Debt Burden by Age: 2026 Avg Balances, Student Loans Lead

In 2026, nearly two-thirds of adults in their 20s carry debt, with the average person in their 20s owing $19,962. Student loans dominate for recent graduates: federal borrowers owe an average of $39,075 (median $20,000–$25,000), while those under 25 average $14,162 and those in their late 20s average $33,150. Student debt accounts for 28% of total debt among those under 30. Credit card balances also rise: Gen Z carries an average of $3,493 (about 22% interest, roughly $770 in annual interest on minimum payments), millennials in their early 30s average $6,961, and 41% of Gen Z have auto loans averaging $20,893. BNPL use is widespread, with 44% of Gen Z users in 2024 averaging 6.3 loans and $848 spent. Missed payments incur fees and harm credit. Prioritize high-interest debt first, build a $1,000–$2,000 emergency fund, and use credit as a tool, not a solution.