Americans in these 3 states are drowning in debt the fastest. Here’s what’s driving it and how to keep your head above water

Maryland experienced the largest increase, with an average total debt rising 10.3% from $170,251 to $187,750. Nevada followed, with an increase of nearly 10% and an average consumer debt of $163,999; and Idaho ranked third, with $161,941 in average consumer debt and a 9.3% increase.

Although these states saw the sharpest increases, consumer debt levels are rising nationwide. Missouri was the only state to record a decline, with average debt falling 0.3%. Meanwhile, average mortgage balances increased in 45 states, personal loan and credit card debts rose in 39 states, and average non-mortgage debt increased in 28 states.

Why debts are rising

“Given stubborn inflation, still-high interest rates and a tough job market, I tend to believe that most of the debt growth we’re seeing today is because of people struggling, but there’s never just one reason,” Matt Schulz, LendingTree chief consumer finance analyst, told LendingTree (1).

That complexity is evident in Idaho’s case: The state ranked among those with the largest increases in consumer debt, yet also recorded the fastest average real wage growth (6.7%) among U.S. states between July 2024 and June 2025, according to Visual Capitalist’s analysis of Bureau of Labor Statistics data (2).

For many, though, rising debt levels come from feeling increasingly squeezed. While inflation rates have come down from their highs in 2022, prices continue to rise (3).

Meanwhile, housing prices remain near historic highs (4). And mortgage rates, while below recent peaks, are still well above levels seen between the Great Recession and the early years of the pandemic (5). Both factors can lead to higher mortgage debt.

More than one-third (38%) of consumers surveyed in September 2025 by Achieve, a debt management company, say it’s “difficult” or “very difficult” to pay all of their bills on time, with two-thirds (67%) saying they don’t earn enough income to cover their spending.

The most commonly cited reasons for missed debt payments were a job loss or reduced income (21%) and higher costs of essential expenses (15%) (6). If prices continue to rise or the labor market weakens, more people could find themselves stretched thin.

How to rescue yourself from debt

With strong economic pressures across the U.S., it’s possible for almost anyone to find themselves drowning in debt. Some signs you may be getting in over your head include not knowing how much you owe, only being able to make minimum payments, or borrowing money to pay everyday bills, according to Debt.com (7).

Another red flag is having a debt-to-income (DTI) ratio above 40%. To figure this out, add up your total monthly debt payments (including your rent or mortgage) and divide that by your gross monthly income (8).

If you’re losing sleep over your finances or hiding your situation from family and friends, it may be time to make a change.

Begin by taking stock of what you owe. Create a list showing each lender, the balance owed and the interest rate, minimum monthly payment and due date. Prioritize bringing any delinquent accounts back into good standing, if possible.

Once you have a better understanding of your debt situation, consider which debt repayment strategy works best for you. Two of the most common are the debt avalanche method and the debt snowball method.