Household debt in America rises to $18.04 trillion, with blue state residents feeling more overwhelmed.

From Yahoo Finance: 2025-04-20 07:01:00

Household debt in America has risen by $93 billion in the fourth quarter of 2024, reaching a collective $18.04 trillion. Credit card balances surged by $45 billion to $1.21 trillion, while auto loans increased by $11 billion to $1.66 trillion. Mortgages, student loans, and HELOC balances have also significantly risen.

A new survey by AmeriSave Mortgage reveals that Americans are handling debt-related stress differently based on political beliefs and location. Homeowners with left-leaning political views are 1.7 times more likely to be “stressed but managing” their debt. Residents in blue states are twice as likely to feel overwhelmed by debt during the holidays.

People in red states experience more financial stress from unexpected mishaps like surprise tax bills, job loss, or health issues. Red state residents are twice as likely to feel distressed by debt multiple times a month. The national median household income is $80,610, with households in blue states typically exceeding this amount due to higher housing costs.

The location of your home can impact your ability to pay down debt. Homes in blue states, often in coastal areas and major cities, have higher values, providing more equity to address debt. In contrast, homes in red states, located in rural areas with lower housing costs, may rely on different strategies to manage debt due to limited equity growth.



Read more at Yahoo Finance: Here’s How Stressed People Are About Money in Red vs. Blue States