At first glance, this year looks pretty quiet when it comes to household debt. According to a recent report by Experian, the average American now carries $104,755, which is largely unchanged from last year.

Good news? You might think so.

Considering a year marked by inflation, tariffs, and rising living costs, that "flat" figure might seem like a win for households. However, when you look closer at the numbers, they are still feeling the pinch.

A "Stable" Average That Isn't Really Stable

Mortgage, auto loan, and credit card balances all increased this year. The only thing keeping the national average from rising further was the temporary dip in student loan balances after one-time discharges. Without that distortion, the overall picture would look far more strained.

And that's where the most important shift shows up: HELOC balances jumped 9%. More homeowners are tapping into their equity, and the motivations are split. Some are consolidating high-rate debt or using a HELOC strategically. Others are leaning on equity because their monthly budgets are stretched thin -- even as home values rise.

For advisors, that difference matters. A HELOC can be a planning tool or an early warning sign, depending on what's driving the behavior.

Debt Patterns Differ By Score And Generation

Debt also rose at both ends of the credit-score spectrum. High-score borrowers are often taking on debt intentionally: financing EVs, renovations, or simply securing favorable terms. On the other hand, lower-credit borrowers are typically accumulating debt for more stressful reasons: higher interest costs, limited refinancing options, and fewer chances to lower payments.

At the same time, more Americans are moving into higher credit ranges. The number of Americans that now have a FICO score above 740 has increased from 46.5% to 50.3%. Yet the picture varies widely across generations and states: Gen Z saw the largest debt increases over the past year, while Colorado tops the state with the highest amount of average household debt ($155,000), while West Virginia ($63,000) has the lowest.

Consumer debt may look "flat" this year, but it’s all about the "how" and the "why" people are borrowing. From HELOC surges to generational shifts, households are feeling the pressure, whether they are admitting it or not.

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