Americans are carrying more debt than ever before, and new data shows Houston residents are among the most burdened in the nation.
Total household debt in the United States has climbed to a record $18.8 trillion, raising concerns as many families continue to grapple with higher costs for housing, groceries, insurance and other essentials.
The problem is especially pronounced in Houston.
According to a recent LendingTree analysis of the 50 largest U.S. metropolitan areas, Houston ranks as the third most debt-ridden major metro in America, with residents carrying an average of $44,640 in non-mortgage debt. Only Austin ($45,920) and San Antonio ($44,812) ranked higher.
The average non-mortgage debt across the nation’s 50 largest metros is $37,827, meaning Houston residents carry nearly $7,000 more debt than the average resident of a major metro.
What’s driving Houston’s debt?
LendingTree found that auto loans account for the largest share of non-mortgage debt among many Americans, and Houston is no exception.
The average Houston resident carries:
- $16,357 in auto loan debt
- $12,556 in student loan debt
- $8,583 in credit card debt
- $4,473 in personal loan debt
Nearly 98% of Houston-area residents have some form of non-mortgage debt, according to the study.
Researchers noted that Texas cities consistently rank among the nation’s most debt-burdened metros, in part because residents often rely heavily on vehicles and frequently take on larger auto loans.
What families can do if they’re struggling
Consumer advocates say people feeling overwhelmed by debt should act quickly rather than wait until payments become unmanageable.
Financial experts recommend:
- Creating a detailed budget to identify where money is being spent.
- Contacting lenders and credit card companies about hardship programs or lower interest rates.
- Working with a nonprofit credit counseling agency to develop a debt repayment plan.
“These firms will create a budget for you, put you on a path to recovery and help lower interest rates for you,” KPRC 2 consumer reporter Bill Spencer said.
Nonprofit credit counseling organizations can often help consumers consolidate payments, negotiate with creditors and develop long-term financial plans at little or no cost.
Inflation continues to strain budgets
The growing debt burden comes as Americans continue to feel the effects of inflation.
Although inflation has cooled from its pandemic-era highs, many households are still paying significantly more for everyday necessities than they were just a few years ago. Experts say rising costs have forced some families to rely more heavily on credit cards and loans to cover expenses.
Financial counselors say the earlier consumers seek help, the easier it is to regain control of their finances before debt spirals further out of reach.