The monthly payment is HOW much? (Credit: Basicdog on Shutterstock)

In A Nutshell

The average American will pay off $1,786,810 in debt between ages 18 and 78, covering mortgages, auto loans, student debt, and credit cards.

Debt peaks twice: first at age 38 when buying a first home ($320,092), then at age 61 with a second home purchase ($370,259).

Geography matters enormously. Hawaiian residents face $2.57 million in lifetime debt while West Virginians pay just $1.39 million, a $1.2 million difference driven largely by housing costs.

Mortgages consume 62.6% of lifetime debt ($1.1 million), while cars add $245,297, credit cards cost $387,985, and student loans average $35,668.

On average, Americans will spend close to $2 million dollars on major debt payments before their life ends. That staggering figure, according to an eye-opening study, represents every car loan, mortgage payment, student loan bill, and credit card balance between age 18 and death at 78.

A new analysis by JG Wentworth concludes that the average American will pay off $1,786,810 in debt across their lifetime. That’s money tied up in monthly obligations rather than available for savings, investing, or simply having more breathing room in the budget.

The study breaks down exactly where that $1.8 million goes over 60 years of adult life. The calculation includes four major debt categories affecting most Americans: mortgages, auto loans, student debt, and credit cards. Each follows a predictable pattern, spiking at key life stages and gradually declining through years of payments. The total includes both principal and interest, though credit card interest was excluded due to variable rates.

That $1.8 million average masks enormous regional variations. Hawaiian residents will pay off $2,570,976 over their lifetime, while West Virginians face just $1,391,240. The gap between most and least expensive states spans nearly $1.2 million, driven largely by housing costs.

Debt Peaks at Two Critical Ages

In this model, debt typically starts when someone turns 18. Between a first car loan and an initial credit card, young adults begin with $20,718 in obligations. That drops to $5,764 by age 22 as they work and make payments.

College loans often come due at 23, pushing debt back up to $42,242. For many people in the analysis, debt stays relatively manageable through their late 20s and early 30s as they buy second cars and pay down student loans.

At 38, everything changes. First-time homebuyers see their debt explode from $17,139 to $320,092 overnight. That single purchase multiplies debt nearly 20-fold.

Americans spend their 40s and 50s gradually chipping away at that first mortgage. Debt declines steadily until age 61, when the typical American buys a second home. At this peak moment, total debt hits its lifetime high: $370,259.

By retirement age 67, people have reduced their burden to $212,596. From 75 to 78, only credit card debt remains at about $6,754 per year.

(Credit: JGWentworth.com) Your Home Consumes $1.1 Million

Housing debt alone accounts for $1,117,860—that’s 62.6% of the $1.8 million lifetime total. The analysis assumed Americans purchase two homes: a first at age 38 with a 30-year mortgage, and a second at 61 with a 15-year term.

California homebuyers face the steepest housing costs at $1,844,069 across two homes. Hawaii follows at $1,829,064, while Washington residents pay $1,635,236.

West Virginia offers the cheapest homeownership at $784,006 for two houses. Iowa and Mississippi residents also pay less than $830,000 for two homes over their lifetimes.

The enormous variation in housing costs explains why some state residents pay nearly twice as much in lifetime debt. In Hawaii, mortgage payments consume 71.1% of lifetime debt.

Cars, Credit Cards, and College Add $670,000 More

Auto financing adds $245,297 to lifetime debt totals. The average American purchases four cars over their lifetime, with the second typically bought around age 30. Alaska residents pay the most ($290,056) due to higher vehicle prices, while New Hampshire, Vermont, and Maine residents pay around $200,000.

Credit card debt costs $387,985 over 60 years. Balances start low for young adults at $3,456 annually, peak during middle age at $9,557 per year, then drop after 60. About half of credit card users carry revolving balances rather than paying in full each month. Alaskans rack up $484,620 in lifetime credit card debt, while Iowans carry just $319,740.

Student loans represent the smallest slice at $35,668 on average. The study focused on federal undergraduate borrowing, which represents the vast majority of student debt. Maryland graduates face $43,692 in student debt, while North Dakota students pay just $29,647.

One 15-Year Window of Relief

Between ages 23 and 38, many Americans experience their only sustained period of manageable debt. During these working years, they steadily pay down initial obligations without taking on massive new loans.

Then homeownership resets everything. After roughly 23 years of paying on that first 30-year mortgage, the model assumes many buyers take on a second home at age 61. That creates another 15 years of debt extending almost to death at 78.

Three decades of adult life (ages 38-67) center on paying off two houses. The $1.8 million lifetime debt total reflects how housing obligations structure finances for most Americans.

(Credit: JGWentworth.com) Where You Live Determines What You Pay

Hawaiian residents will pay off $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 five most expensive states for lifetime debt. All share high housing costs pushing mortgage totals well above $1.5 million.

Iowa ($1,431,251), Kentucky ($1,448,664), and Indiana ($1,463,183) join West Virginia as the most affordable states. Lower home prices keep mortgage debt under $860,000 for two houses.

The $1.2 million gap between Hawaii and West Virginia shows how geography determines financial life. Hawaiian residents will pay off roughly $20,000 more per year throughout their adult lives compared to West Virginians.

Study Methodology

Researchers calculated lifetime debt from age 18 to 78 using national data on borrowing patterns. The $1,786,810 figure represents total payments including both principal and interest across mortgages, auto loans, federal undergraduate student debt, and credit card balances. Credit card interest was excluded from the calculation due to highly variable rates.

Mortgage calculations used amortized loan payment formulas based on average home prices, credit scores, and lending terms for first-time and repeat buyers per state. Data came from Experian’s state mortgage analysis and LendingTree’s first-time homebuyer study. Auto loans assumed 20% down payments on four used vehicles purchased at typical life stages, with pricing from iSeeCars and loan terms from Experian.

Student loan figures reflected average federal undergraduate borrowing by state from Education Data Initiative with standard repayment schedules. Credit card estimates came from Experian’s annual balance data by age group.

State-level variations came from publicly available data on regional housing costs, vehicle prices, education expenses, and credit card usage patterns. The study excluded medical bills, personal loans, and other debt types because only small percentages of Americans carry these consistently. All data was collected between June and August 2025.

Funding and Disclosures

This analysis was conducted by JG Wentworth, a financial services company specializing in structured settlements, annuity purchases, and debt relief solutions. No external funding supported this research.

Limitations

The study models typical borrowing patterns and assumes consistent behavior across all income levels. It does not account for individuals who rent rather than buy homes, pay cash for vehicles, or avoid credit cards. Actual lifetime debt varies significantly based on individual financial decisions, income levels, and unexpected life events. Interest rate fluctuations over 60 years will affect actual costs. The analysis uses current lending standards and may not reflect future borrowing conditions.

Disclaimer

This article reports on an analysis of average debt patterns across typical American lifetimes. The figures represent modeled scenarios based on national averages and do not reflect individual financial situations. Actual lifetime debt varies significantly based on personal decisions, income levels, geographic location, interest rate environments, and life circumstances.

The $1,786,810 figure includes both principal and interest payments for mortgages, auto loans, and student debt, though credit card interest was excluded from calculations. Mortgage principal payments build home equity and may contribute to wealth building. This analysis assumes borrowing patterns that do not apply to all Americans, including those who rent housing, pay cash for vehicles, or avoid credit cards entirely.

This article is for informational purposes only and does not constitute financial advice. Readers should consult qualified financial professionals for guidance on their specific situations. The source analysis was conducted by JG Wentworth, a financial services company, using publicly available data collected between June and August 2025.