Here’s how to keep your head above water Aditi Ganguly May 4, 2026 9 min read TREE Petrychenko Anton/Shutterstock Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Many Americans are under financial strain as they grapple with rising costs and carry growing balances on mortgages, credit cards and personal loans. Now, a new LendingTree study found that consumer debt is rising especially quickly in three states.
U.S. consumers increased their average total debt from $134,495 to $139,659 between Q3 2024 and Q3 2025 — an increase of 3.7%, or $5,164, according to the study. Top Picks Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here's how to fix it ASAP The IRS usually taxes gold as a collectible — but this little-known strategy lets you hold physical bullion tax-free.
Get your free guide from Priority Gold Maryland experienced the largest increase, with an average total debt rising 10.3% from $170,251 to $187,750. Nevada followed, with an increase of nearly 10% and an average consumer debt of $163,999, and Idaho ranked third, with $161,941 in average consumer debt and a 9.3% increase. Although these states saw the sharpest increases, consumer debt levels are rising nationwide.
Missouri was the only state to record a decline, with average debt falling 0.3%. Meanwhile, average mortgage balances increased in 45 states, personal loan and credit card debts rose in 39 states, and average non-mortgage debt increased in 28 states. Why debts are rising "Given stubborn inflation, still-high interest rates and a tough job market, I tend to believe that most of the debt growth we're seeing today is because of people struggling, but there's never just one reason," Matt Schulz, LendingTree chief consumer finance analyst, told LendingTree (1).
That complexity is evident in Idaho's case: The state ranked among those with the largest increases in consumer debt, yet also recorded the fastest average real wage growth (6.7%) among U.S. states between July 2024 and June 2025, according to Visual Capitalist's analysis of Bureau of Labor Statistics data (2). For many, though, rising debt levels come from feeling increasingly squeezed. While inflation rates have come down from their highs in 2022, prices continue to rise — up 3.3% year over year ending in March (3).
Meanwhile, housing prices remain near historic highs (4). And mortgage rates, while below recent peaks, are still well above levels seen between the Great Recession and the early years of the pandemic (5). Both factors can lead to higher mortgage debt.
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