American household debt reached a record $18.59 trillion in Q3 2025, with mortgages making up 70%. 90% of Americans carry debt, with an average of $104,755 per person. While mortgage delinquencies are low, student loan and credit card debt are rising, especially among lower-income borrowers.

A “K-shaped economy” emerges post-pandemic, with the rich benefiting more than the poor. Rising debt figures are causing financial strain for average Americans. Planning and discipline, like using a money management app and the avalanche method for debt repayment, can help ease the burden and improve financial stability.

Despite the high debt levels, Americans can take steps to manage their financial situation. Prioritizing debt payments, considering refinancing options, and building an emergency fund are key strategies to work towards a debt-free future. Clarity and consistency in financial planning can lead to increased confidence and financial security.

Read more at Yahoo Finance: As household debt hits a record high of $18.59 trillion, Americans owe more than ever before. Here’s how to manage yours