Debt is one of the most accurate yardsticks for measuring financial health, and in most of the country, households have less of it this year than last — at least when home loans aren’t part of the equation. A new study from consumer credit reporting agency Experian found that non-mortgage household debt fell between 2023 and 2024 in all but a few states.
Here’s a look at why people owe less and where non-mortgage debt fell the most.
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What Is Non-Mortgage Debt?
Non-mortgage debt is a household’s combined balance of loans and lines of credit, not including first and second mortgages. That’s a big omission, considering Experian data shows that the average mortgage balance exceeded $250,000 in 2024 and that mortgages account for two-thirds of America’s $17 trillion overall consumer loan balance — but the omission is by design.
Non-mortgage debt is a telling statistic for analysts because it includes a much broader cross-section of the population than the 40% who have home loans. Much larger percentages hold consumer debt like auto loans, credit cards, personal loans and student loans, all of which are included in the category of non-mortgage debt.
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Why Is Non-Mortgage Debt Falling?
Some types of non-mortgage debt, like personal loans, have plateaued, and others, like credit card debt, have increased modestly. However, all but a few states have experienced a decrease because of a dramatic decline in one kind of debt, in particular — student loans, which were broadly forgiven in the post-COVID era.
According to Experian, massive student loan cancellations have relieved nearly 5 million people who went into debt to pay for college — roughly 10% of all student borrowers.
The States That Shed the Most Non-Mortgage Debt (and Washington, DC)
Non-mortgage debt declined by more than 2% over the last year in 10 states and the District of Columbia.
Washington, D.C.
- 2023: $25,413
- 2024: $24,258
- Year-over-year percent change: -4.5%
Maryland
- 2023: $25,039
- 2024: $24,081
- Year-over-year percent change: -3.8%
Georgia
- 2023: $26,554
- 2024: $25,619
- Year-over-year percent change: -3.5%
Indiana
- 2023: $22,172
- 2024: $21,593
- Year-over-year percent change: -2.6%
Delaware
- 2023: $23,887
- 2024: $23,301
- Year-over-year percent change: -2.5%
Virginia
- 2023: $23,581
- 2024: $22,982
- Year-over-year percent change: -2.5%
Kansas
- 2023: $22,485
- 2024: $21,982
- Year-over-year percent change: -2.2%
South Carolina
- 2023: $25,082
- 2024: $24,533
- Year-over-year percent change: -2.2%
New Jersey
- 2023: $22,085
- 2024: $21,631
- Year-over-year percent change: -2.1%
Oregon
- 2023: $22,770
- 2024: $22,288
- Year-over-year percent change: -2.1%
Pennsylvania
- 2023: $22,950
- 2024: $22,471
- Year-over-year percent change: -2.1%
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This article originally appeared on GOBankingRates.com: 10 States Where Non-Mortgage Debt Is Falling the Most
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