MIAMI–U.S. households paid off approximately $170 billion in debt during the second quarter, according to WalletHub’s Household Debt Report.
The report adjusts data for inflation to accurately show how debt compares to historical levels, WalletHub said.
The Key Findings
Among the key findings in the new report:
- Consumers paid down a total of $170 billion in debt during Q2 2023 – 21% more than in Q1 2023 and 5% less compared to Q2 2022.
- Total household debt fell to $17.13 trillion in Q2 2023, and WalletHub “now projects that U.S. households will end the year with $350+ billion more debt than they started with.”
- The average household owed a total of $143,762 at the end of Q2 2023, only $14,339 below WalletHub’s projected breaking point for household finances.
- Household mortgage debt decreased by roughly $161 billion in Q2 2023 - the sixth biggest Q2 paydown since 2004.
- Auto loan debt increased by $3 billion in Q2 2023 – the first second-quarter increase since 2020.
- Debt from HELOCs fell by $2.7 billion in Q2 2023 - the 15th consecutive Q2 paydown but the fifth smallest overall
- Total student loan debt decreased by $52 billion in Q2 2023 – the second biggest Q2 paydown since 2004.
The full report can be found here.
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