U.S. household debt reaches $13.51 trillion amid rising consumer borrowing

U.S. household debt has reached $13.51 trillion, marking 17 consecutive quarters of growth and sitting 21.2% above the post-financial-crisis low from mid-2013. While rising debt can signal financial vulnerability, it may also reflect consumer confidence and economic growth.

To manage various obligations such as mortgages, credit cards, and student loans, experts suggest structured repayment strategies. Common methods include the ‘snowball’ approach, which prioritizes paying off the smallest balances first, and the ‘avalanche’ method, which focuses on debts with the highest interest rates to minimize total interest paid.

A practical payoff plan involves creating a comprehensive list of all debts, including current balances, annual percentage rates (APR), and minimum payments. Because many issuers calculate interest daily, making payments sooner can reduce overall costs. Utilizing extra funds, such as tax refunds or windfalls, toward a specific balance can accelerate the debt elimination process.