American consumer debt continues to rise in 2025, totaling $18.33 trillion, up 3.2% from the previous year. However, 32 states saw a decrease in consumer debt. Average consumer debt nationwide is $156,868, down 4.1% from 2024, with varying decreases in different states ranging from 0.2% to 4.1%.

Despite the overall increase in consumer debt, some states managed to reduce their average consumer debt in 2025. The average consumer debt in states like New York, California, Texas, and Florida decreased by percentages ranging from 0.2% to 4.1%. These reductions signal positive financial trends for residents of these states.

The largest year-over-year debt declines were seen in states like New York and California, where average consumer debt dropped by $6,730 and $1,689 respectively. These reductions were significant and indicate positive financial habits and management among residents in these states.

In contrast to the decreases in states like New York and California, some states saw only minimal reductions in average consumer debt. States like Texas and Florida saw average consumer debt decrease by $1,430 and $2,165 respectively, signaling a slower decline in debt compared to other states.

Overall, the data from the Experian study paints a varied picture of consumer debt trends in the United States. While some states saw significant reductions in average consumer debt, others experienced more modest decreases, highlighting the diverse financial landscapes across the country.

Read more at Yahoo Finance: 32 States Where Consumer Debt Fell the Most Since Last Year