Welcome to the American Dream: $1.8 Million in Lifetime Debt
The typical American will shell out nearly $2 million toward major debts over the course of their life. According to a revealing new study, that total reflects every mortgage payment, car loan, student loan bill, and credit card balance accumulated from age 18 until death at 78.
A fresh analysis conducted by JG Wentworth estimates that Americans repay an average of $1,786,810 in lifetime debt. These payments represent funds committed to recurring obligations instead of being available for saving, investing, or easing monthly cash flow.
The study details how this roughly $1.8 million is distributed across 60 years of adulthood. It focuses on four common debt types that impact most households: home mortgages, auto loans, student loans, and credit cards. Each category follows a familiar lifecycle—rising sharply during major milestones and slowly shrinking as balances are paid down. Both principal and interest were included in the total, except for credit card interest, which was excluded due to fluctuating rates.
While the national average is eye-catching, it hides dramatic differences by location. Residents of Hawaii are projected to pay $2,570,976 in lifetime debt, compared with just $1,391,240 for those in West Virginia. That nearly $1.2 million gap is largely driven by housing prices.
Under the model, debt begins at age 18. Early obligations—often a first car loan and a starter credit card—leave young adults with $20,718 in debt. By age 22, balances fall to $5,764 as payments are made.
Student loans typically enter the picture around age 23, pushing total debt up to $42,242. For many individuals, debt remains relatively stable throughout their late 20s and early 30s as student loans decline and additional vehicles are financed.
At age 38, debt surges dramatically. First-time homebuyers see their obligations jump from $17,139 to $320,092 almost instantly, increasing total debt nearly twentyfold.
Throughout their 40s and 50s, Americans steadily reduce mortgage balances. That downward trend continues until age 61, when the average person purchases a second home. At that point, lifetime debt reaches its highest level: $370,259.
By age 67, debt drops to $212,596. Between ages 75 and 78, most remaining debt consists solely of credit cards, averaging $6,754 per year.
Homeownership dominates lifetime debt. Housing alone totals $1,117,860, or 62.6% of the $1.8 million lifetime figure. The analysis assumes two home purchases: a first home at age 38 financed with a 30-year mortgage, and a second at 61 with a 15-year loan.
California residents face the highest housing costs at $1,844,069 across two homes, followed closely by Hawaii at $1,829,064 and Washington at $1,635,236.
By contrast, West Virginia homeowners pay just $784,006 for two homes. Iowa and Mississippi also remain under $830,000.
These differences explain why lifetime debt nearly doubles between states. In Hawaii, mortgages account for 71.1% of all lifetime debt.
Vehicle financing contributes $245,297 to lifetime debt. The average American buys four cars, with the second purchase typically around age 30. Alaska residents pay the most at $290,056, while New Hampshire, Vermont, and Maine residents spend close to $200,000.
Credit card debt totals $387,985 over 60 years. Annual balances begin at $3,456 for young adults, peak at $9,557 during middle age, and decline after 60. Roughly half of cardholders carry balances month to month. Alaska residents accumulate $484,620 in lifetime credit card debt, compared with $319,740 in Iowa.
Student loans make up the smallest share at $35,668. The study examined federal undergraduate borrowing, which accounts for most student debt. Maryland borrowers average $43,692, while North Dakota borrowers carry $29,647.
Between ages 23 and 38, many Americans experience their most manageable stretch of debt. During these years, earnings rise while major new borrowing is limited.
That period ends with homeownership. After approximately 23 years of payments on the first mortgage, the model assumes a second home purchase at age 61, adding another 15 years of debt that lasts almost until age 78.
Overall, three decades of adult life—from ages 38 to 67—are largely devoted to paying off two homes. The $1.8 million lifetime debt figure underscores how central housing costs are to American finances.
Hawaii residents top the list with $2,570,976 in lifetime debt, nearly double West Virginia’s $1,391,240.
California ($2,558,698), Washington ($2,319,385), and Massachusetts ($2,235,817) round out the most expensive states, all characterized by mortgage totals exceeding $1.5 million.
On the more affordable end, Iowa ($1,431,251), Kentucky ($1,448,664), and Indiana ($1,463,183) join West Virginia. In these states, mortgage debt for two homes stays below $860,000.
The $1.2 million difference between Hawaii and West Virginia equates to roughly $20,000 more per year in debt payments for Hawaiian residents across adulthood.
Researchers modeled debt from ages 18 to 78 using national borrowing data. The $1,786,810 total includes both principal and interest for mortgages, auto loans, federal undergraduate student loans, and credit card balances, excluding credit card interest due to variability.
Mortgage payments were calculated using amortized loan formulas based on state-level home prices, credit scores, and loan terms from Experian and LendingTree. Auto loans assumed 20% down payments on four used vehicles, with pricing from iSeeCars and loan data from Experian.
Student loan figures came from the Education Data Initiative, while credit card balances were sourced from Experian’s age-based data. Regional differences reflected public data on housing, vehicle costs, education expenses, and card usage. Medical debt and other less common obligations were excluded. Data was collected between June and August 2025.
The analysis was conducted by JG Wentworth, a financial services firm specializing in structured settlements, annuities, and debt relief, without external funding.
The model reflects typical borrowing behavior and does not apply to everyone. It excludes renters, cash-only buyers, and individuals who avoid credit cards. Actual lifetime debt varies widely based on income, choices, interest rates, and unforeseen events.
This article summarizes modeled averages and is intended for informational purposes only. It does not constitute financial advice. Readers should consult qualified professionals regarding their personal financial situations.
