Average Consumer Debt Climbs to $21,600, Affecting Quality of Life: Experian Data

Understanding the State of Non-Mortgage Debt Among Consumers

As per Experian’s data from September 2025, the average American consumer carries a non-mortgage debt of around $21,600. A joint survey by personal finance platform Achieve.com and Money.com revealed that approximately a third of Americans have seen an increase in their unsecured debt, such as credit card balances or collateral-free personal loans, over the past year. As the balances continue to grow, borrowers often feel less in control.

Impact of Rising Debt on Quality of Life

Regardless of whether you earn $40,000 or $400,000 annually, mounting debt can significantly affect your life. In the Achieve survey, respondents dealing with “unmanageable” debt reported cutting back on basic needs (47%), skipping monthly bills or debt payments (37%), or accruing more debt on their credit cards (34%). Around 25% even curtailed their retirement savings or investments.

Observations from Financial Planner Matthew Barnard

This trend is regularly observed by Matthew Barnard, a fee-only financial planner from Illinois, in his practice at Maplewood Wealth. Barnard primarily advises high earners, including attorneys grappling with large student loans, a type of unsecured debt. Despite being able to refinance to a lower interest rate after graduation, many still seem burdened by residual debt, leading to a state of financial paralysis.

Unraveling the Cause and Breaking the Cycle

Connecticut-based financial therapist with Freedom Life Therapy and Wellness, LaQueshia Clemons, who has successfully paid off thousands of dollars of her own debt, believes emotions and money are intimately linked. Factors such as unresolved trauma surrounding money, a general lack of understanding of financial tools, poor habits acquired during childhood, or daily stressors from work or relationships can contribute to avoidance or overspending behaviors, leading to unmanageable debt.

The Psychological Aspect of Debt

According to Clemons, the emotions associated with unmanageable debt often include anxiety, depression, overwhelm, shame, and hopelessness. Many respondents from the Achieve survey even reported a lack of sleep and relationship issues due to their financial stress. As such, Barnard often steps beyond the spreadsheet to help clients tackle their debt, prioritizing their mental health over stock market investments.

Intelligent Debt Solutions

Fortunately, most respondents of the Achieve survey (75%) remain optimistic about improving their debt situation. About half of them are open to smart debt repayment strategies such as consolidating multiple debts into a single loan (48%) or working with a debt relief company to negotiate a settlement (44%).

Finding the Right Resources

However, one-third of respondents didn’t know where to seek help. The National Foundation for Credit Counseling is a great resource for borrowers to connect with free debt counselors and programs in their area. These counselors can provide debt management strategies, including advice on consolidation and debt relief, and help borrowers avoid or navigate bankruptcy.

Personalized Debt Relief Solutions

Borrowers struggling with unsecured debt may also consider consulting a reputable debt relief company. Many such providers assess a consumer’s overall financial situation and help determine whether debt settlement, debt consolidation, or another strategy may be most suitable. It’s crucial to evaluate all available options before selecting a course of action.

Addressing Deeper-rooted Financial Issues

For borrowers who think they have deeper issues around money, it might be necessary to consult a financial advisor or financial therapist. These experts can not just assist with practical debt management but also facilitate discussions around mental health and recommend behavioral changes. As Clemons says, “we have to face it with somebody who can talk through the emotions of it — because it’s not just the numbers.”