Black Friday Sale! 50% Off All Access

Americans' Debt Just Exceeded $17 Trillion for the First Time — Here's the Smartest First Step to Fix Your Finances Debt hit new record balances in nearly every category, the Federal Reserve Bank of New York reported.

By Amanda Breen

Entrepreneur+ Black Friday Sale

Our biggest sale — Get unlimited access to Entrepreneur.com at an unbeatable price. Use code SAVE50 at checkout.*

Claim Offer

*Offer only available to new subscribers

boonchai wedmakawand | Getty Images

Americans are seeing increasing amounts of debt amid an uncertain economy.

Household debt balances reached a new high of $17.05 trillion in the first quarter — shooting up $148 billion from the fourth quarter of last year — the Federal Reserve Bank of New York reported Monday.

Related: How to Manage Personal Credit Card Debt as an Entrepreneur

Debt increases touched nearly every category in the first quarter, but record balances were recorded for mortgages, home equity lines of credit, auto loans, student loans, retail cards, and additional consumer loans, per CNN.

One area that didn't see a dramatic uptick? Credit card balances, which held firm at $986 million. But it's not all good news: It's the first time in more than 20 years that credit card debt hasn't decreased, per NY Fed researchers.

And credit card debt remains a major threat to Americans' personal finances in the context of increasing interest rates. The average credit card balance clocked in at just over $5,900 in 2022, per Experian, and some Americans report using credit cards to cover basic necessities.

Related: How to Lower Your Personal Loan Payments | Entrepreneur

That's why senior industry analyst for Bankrate Ted Rossman says it's worth paying down credit card debt first.

"For the foreseeable future, we're stuck with high credit card rates, high balances, and more people carrying debt," Rossman told CNN. "My advice would be to pay down credit card debt, as quickly and cost-effectively as possible. I know it may be easier said than done, but 0% balance transfer cards are still abundant to pause that interest clock for up to 21 months."

Amanda Breen

Entrepreneur Staff

Senior Features Writer

Amanda Breen is a senior features writer at Entrepreneur.com. She is a graduate of Barnard College and received an MFA in writing at Columbia University, where she was a news fellow for the School of the Arts.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Science & Technology

I've Spent 20 Years Studying Focus. Here's How I Use AI to Multiply My Time and Save 21 Weeks of Work a Year

AI is supposed to save time, but 77% of employees say it often costs more time due to all the editing it requires. Instead of helping, it can become a distraction. But don't worry — there's a better way.

Business News

The Two Richest People in the World Are Fighting on Social Media Again

Jeff Bezos and Elon Musk had a new, contentious exchange on X.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Barbara Corcoran Says This Is the Interest Rate Magic Number That Will Make the Market 'Go Ballistic'

Corcoran said she praying for lower interest rates and people are "tired of waiting."

Money & Finance

Why Donald Trump's Business-First Policies Trump Harris' Consumer-Centric Approach

President Donald Trump's pro-business agenda is packed with policy moves encouraging investment to drive economic growth. The next Congress has a unique opportunity to support entrepreneurship and innovation, improving U.S. competitiveness with the rest of the world.

Starting a Business

Why Are So Many Course Creators Struggling if It's 'Such an Easy Business'? Here's the Truth Behind the $800 Billion Industry

Creating an online course is so easy — at least, that's what many "gurus" would like you to believe. There's a lot of potential in the $800 billion industry, but here's why so many course creators are struggling.