Survey Finds 1 in 3 Americans Think They Will Never Be Debt Free

GOBankingRates' latest survey revealed that the U.S. debt crisis continues to plague Americans, with many in fear of never being able to pay off debt.

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GOBankingRates

Nov 08, 2018, 07:15 ET

LOS ANGELES, Nov. 8, 2018 /PRNewswire/ -- In a new survey, nearly a third of Americans expressed concern that they will not be able to pay off debt in their lifetime.

Forty-four percent of Americans said that low income is the No. 1 reason for their ongoing struggle with debt. Respondents also reported that high costs of living and the cost of tuition contributed to their debt burden.

The latest survey by GOBankingRates explores why so many people are struggling with debt. Almost half--44 percent--of respondents reported that low income is the main factor to not being able to pay off their debt.

To find out more about Americans' struggles with debt, GOBankingRates asked more than 5,000 adults the following questions:

Of the following, what is the most likely reason you have debt or are struggling with debt? Select all that apply.
Which type of debt would you like to get rid of most?
What would you do if you could eliminate or reduce your debt? Select all that apply.
Do you think you will ever get out of debt?
To your best estimate, how much total household debt (mortgage, credit card, student loan, auto & medical debt) do you currently have?
At what age did debt become a burden in your life?

Overall Average Debt

On average, Americans reported to have $52,048 in overall debt.
Adults in Wyoming carry the most debt, at $89,470.

Gender and Age Insights

A surprisingly high percentage of respondents (30 percent) reported that debt became a burden between the ages of 18 and 24.
On average men reported to owe slightly more than women -- men owe an average of $55,081 while women owe an average of $50,124.
A higher percentage of women claimed that their income is too low to pay off debt -- 48 percent of women vs. 40 percent of men.

Overall Debt by Age and Gender
Age/Gender	Average Debt
18-24	$28,090.77
25-34	$58,216.71
35-44	$68,233.57
45-54	$57,901.95
55-64	$53,694.77
65 and over	$48,066.73
Females	$50,123.50
Males	$55,080.53
Source: GOBankingRates survey

Additional Insights

Household debt continues to rise in the U.S. and is at an all-time high of $13.29 trillion, according to the Federal Reserve Bank of New York. Categories of debt such as mortgage, home equity line of credit, student loans, auto loans, credit card and total debt have increased by almost a trillion dollars or more since 2017.
The biggest contributor to the rise in household debt is growing mortgage debt, which has reached $9 trillion this year. However, experts say mortgage debt is good debt --higher mortgage debt means less Americans are paying high rents without earning equity.
41 percent of respondents reported that they would save more for retirement if they could eliminate or reduce debt.

For more information on methodology or to view the full survey results, visit: https://www.gobankingrates.com/net-worth/debt/how-much-debt-does-the-average-american-have/

About GOBankingRates

GOBankingRates.com is a personal finance news and features website dedicated to helping visitors Live Richer™. From tips on saving money to investing for retirement or finding a good interest rate, GOBankingRates helps turn financial goals into milestones and money dreams into realities. Its content is regularly featured on top-tier media outlets, including MSN, MONEY, AOL Finance, CBS MoneyWatch, Business Insider and dozens of others. GOBankingRates specializes in connecting consumers with the financial institutions and products that best match their needs. Start your journey toward a rich mind and full wallet with us here.

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SOURCE GOBankingRates