Study finds personal debt exclusive of mortgages less than reported in 2019

Findings from Northwestern Mutual’s 2023 Planning & Progress Study maintain the average American’s personal debt exclusive of mortgages is $21,800, or $8,000 less than reported in 2019.

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“At a time of high inflation and economic uncertainty, it’s encouraging to see personal debt levels have held relatively steady year-over-year, and even ticked down a little,” Northwestern Mutual Chief Customer Officer Christian Mitchell said. “That said, it can be a slippery slope between manageable debt and runaway debt so it’s an important time to remain extra vigilant about planning and spending.”

The 2023 Planning & Progress Study was conducted by The Harris Poll on behalf of Northwestern Mutual, focusing on 2,740 domestic adults aged 18 or older and executed online between February 13 and March 2, 2023.

Per the analysis, 35 percent of Americans noted they are carrying close to or at their highest level of debt ever, with 43 percent of respondents possessing personal debt revealing they are currently carrying close to or at their lowest level of debt ever.

“This is a reminder that debt trends aren’t uniform, and everyone’s personal circumstances are different,” Mitchell said. “More people feel like they’re moving in the right direction than those who do not, but there’s still a sizable universe of people carrying more debt than ever. No matter where you are on that spectrum, it’s important to be proactive and intentional about how debt is managed, and where it fits within a broader long-term financial plan.”

Mitchell said there are productive ways to incorporate debt into a financial strategy. Student loans are a good example, resulting in long-term upsides, he said.

“But still, it’s critical to have a holistic strategy and a debt repayment plan that accounts for a diverse set of financial goals,” Mitchell said.