Americans In Record Debt: Where North Carolina Ranks

NORTH CAROLINA — From student loans to home loans to credit cards, Americans carried a record $14 trillion of debt into 2020, according to a new report from credit agency Experian. In North Carolina, residents contributed to the national total by racking up $371.9 billion in debt last year.

The amount of debt held by U.S. consumers has grown by $2.3 trillion since the height of the Great Recession in 2009. Debt has increased in nearly every category — especially student loans, which increased 113 percent over the last 10 years to a record $1.4 trillion.

Consumer debt in the United States has also hit record highs in other categories, according to the study:

• Auto loan debt is at a record high of $1.3 trillion.
• Consumer credit card debt is at a record high of $829 billion.
• Home equity lines of credit balances total $420 billion.
• Personal loan debt totals $305 billion.
• Retail credit card debt is at a record high of $90 billion.

All debt balances with the exception of home equity lines of credit have increased by at least double-digit percentages in the past decade, the report said. Debt from home equity lines of credit actually decreased by 13 percent in the last 10 years.

Despite only 10 percent of Americans having student loans, the debt is still the third largest by balance, the report said, adding that individual balances have increased by a staggering 73 percent to an average balance of $35,620 per person.

In North Carolina, the average student loan borrower carries a debt of $36,257, according to a separate report from Experian.

Washington, D.C., has the highest average student loan balance among states, with $56,000 per borrower, the report said; Davis, California, has the highest student loan balance among cities with $82,754 per borrower.

Student loan debt has been a point of conversation this year, particularly on the Democratic presidential campaign trail, where candidates frequently have touted solutions to the growing amount. Former Vice President Joe Biden has voiced support for simplifying income-driven repayment plans and free community college, while Vermont Sen. Bernie Sanders believes all student debt should be canceled, according to a report by Forbes.

When it comes to borrowing, older Americans are borrowing less, while younger generations are doing the opposite, according to the report. Since 2015, millennials have increased their debt by 58 percent compared with Generation X, whose debt grew by just 10 percent, and baby boomers, whose debt actually decreased.

There is good news, though: Despite the record amount of debt, Americans are keeping up on their payments and maintaining high credit scores, the report said.

The average delinquency rate across all debt decreased by 38 percent over the last 10 years. Younger Americans tend to struggle more here as well, the report said, as Generation Z is having the most trouble making payments on time, followed by millennials.

Credit scores have also never been higher, according to the report. On average, those with the most debt have a credit score between 740 and 799, while those with the scores lower than 579 carried the least debt.