32 States with the Largest Decrease in Consumer Debt Compared to Last Year

Written by Emily J. Thompson, Senior Investment Analyst

Source: Yahoo Finance

Updated: Dec 07 2025

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Source: Yahoo Finance

Rising Consumer Debt: As of June 2025, Americans owe $18.33 trillion in consumer debt, a 3.2% increase from the previous year, despite high inflation and interest rates affecting household budgets.
State-Level Debt Trends: Consumer debt has decreased in 32 states, indicating a varied impact across the country, with some states experiencing significant declines in average debt per consumer.
Average Debt Figures: The average consumer debt in 2025 is reported at $156,868, down from $163,598 in 2024, reflecting a dollar difference of $6,730 per consumer, or a 4.1% decrease.
Debt Reduction Across Categories: Various categories of consumer debt, including mortgages, credit cards, and auto loans, show a trend of reduction, highlighting a shift in borrowing behavior among consumers.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.