$195 Billion in Medical Debt

Nearly 1 in 10 Americans has significant medical debt, according to an analysis of the numbers by Peterson-KFF Health System Tracker. KFF researchers analyzed data from the Census Bureau's Survey of Program Participation to determine who had significant medical debt as of December 2019 and how much they owed. They defined "significant" medical debt as $250 or more in unpaid medical bills. 

Overall, 23 million people—9 percent of U.S. adults—have significant medical debt. Those most likely to have medical debt are people aged 50 to 64 (12 percent), Blacks (16 percent), people in nonmetropolitan areas (13 percent), residents of the South (12 percent), and the uninsured (13 percent). But medical debt is common in every demographic segment. Even among those with health insurance, 9 percent have significant medical debt. 

Distribution of adults with significant medical debt by how much they owe, 2019

13% owe between $250 and $500

18% owe between $501 and $1,000

20% owe between $1,001 and $2,000

22% owe between $2,001 and $5,000

13% owe between $5,001 and $10,000

13% owe more than $10,000

Aggregate medical debt for those with significant medical debt adds up to $195 billion in unpaid bills, the researchers estimate. "Medical debt remains a persistent problem even among people with insurance coverage," the researchers report. "The fact that medical debt is a struggle even among households with health insurance and middle incomes indicates that simply expanding coverage will not erase the financial burden caused by high cost-sharing amounts and high prices for medical services and prescription drugs," they conclude.

Source: Peterson-KFF Health System Tracker, The Burden of Medical Debt in the United States

75% of Younger Adults Are in Debt

The 77 percent majority of American households are in debt, according to the Federal Reserve Board's Survey of Consumer Finances. The accumulation of debt starts early. Among 18-to-24-year-olds, 68 percent report that their household has debt, according to a University of Chicago GenForward Survey fielded in 2020. The figure is 76 percent among those aged 25 to 30 and 82 percent among 31-to-36-year-olds.  

Percent of people aged 18 to 36 with household debt

75% have any household debt

35% have student loans

32% have auto loans

28% have a mortgage

23% carry a credit card balance 

15% have past-due medical debt

Student loans are the most common type of debt among younger adults, and the percentage of 18-to-36-year-olds with student loans does not vary much by age. Student loan debt is most common among younger adults with some college (42 percent) or a bachelor's degree (46 percent), but it is also significant among those without a high school diploma (23 percent) and those with only a high school diploma (19 percent). 

Nearly half (48 percent) of young adults say their household debt is manageable. But a substantial 16 percent say their debt is a bit more than is manageable, and another 8 percent say their debt is far more than is manageable. The debt burden shouldered by younger adults helps to explain why they have been slow to embrace significant life events...

Percent of 18-to-36-year-olds who say debt has delayed life event

Buying a home: 29%

Buying a car: 26%

Saving for retirement: 25%

Continuing their education: 22%

Having children: 14%

Marrying: 12%

Source: University of Chicago, GenForward Survey, Race, Ethnicity, and the Financial Lives of Young Adults

Nearly One in Five Households Has Medical Debt

The most comprehensive look at the characteristics of Americans with medical debt is available from the Census Bureau's Survey of Income and Program Participation (SIPP). The 2018 SIPP included new questions about medical debt, asking respondents whether, in the past year, they had medical bills they were unable to pay in full. 

Overall, 19 percent of households had medical bills they were unable to pay in 2017, the Census Bureau reports. Here are the percentages by age group...

Percent of households with medical debt by age of householder

Total households: 19.0%

Under age 35: 19.4%

Aged 35 to 44: 22.4%

Aged 45 to 54: 22.9%

Aged 55 to 64: 22.0%

Aged 65-plus: 11.3%

Not surprisingly, households with at least one member who did not have health insurance during the year were most likely to have medical debt (31 percent). But even among households in which every household member had health insurance coverage all year, a substantial 16 percent had unpaid medical bills. The average amount of medical debt owed by households with such debt was a substantial $12,430. 

Source: Census Bureau, 19% of U.S. Households Could Not Afford to Pay for Medical Care Right Away

What Americans Owe

American households owed a median of $64,800 in 2019, according to the Federal Reserve's Survey of Consumer Finances. This means half of households owe more than this amount and half owe less. Here are the details of debt in 2019...

	% of households  with debt	median amount                       owed
Any debt	76.6%	$64,800
Credit card balance	45.4%	$2,700
Primary residence	42.1%	$134,800
Vehicle loans	36.9%	$13,100
Education loans	21.5%	$22,300
Other installment loans	10.5%	$3,800
Other loans secured by residential property	4.7%	$122,000

The most common type of debt is credit card, with 45 percent of households having a credit card balance after their last payment. The majority of households use credit cards only for convenience, the Federal Reserve reports, paying the balance in full each month. 

Sixty-five percent of households owned their primary residence in 2019. With 42 percent of households having debt secured by their primary residence, this means about one-third of households own their home free and clear.

Source: Federal Reserve Board, Changes in U.S. Family Finances from 2016 to 2019: Evidence from the Survey of Consumer Finances

30 Years of Student Loans

Student loans are a ball and chain around the necks of millions of Americans. It didn't used to be this way. The first time the Federal Reserve fielded the Survey of Consumer Finances in 1989, only 8.9 percent of households had student loans. Those households owed a median of just $6,000 (in 2019 dollars) in education debt. Thirty years later in 2019, a much larger 21.4 percent of households had student loans, and they owed a median of $22,000. 

Of course, younger adults carry the biggest burden of student loans. Among householders under age 35, the share with education debt climbed from 17 percent in 1989 to 41 percent in 2019. A growing share of middle-aged householders also have education debt. Take a look...

Percent of households with education debt by age of householder, 1989 and 2019

	2019	1989
Total households	21.4%	8.9%
Under age 35	41.4	17.1
Aged 35 to 44	33.7	10.9
Aged 45 to 54	23.3	7.3
Aged 55 to 64	12.2	4.1
Aged 65 to 74	4.2	NA
Aged 75-plus	NA	NA

NA = Too few cases to make an estimate.

The rise of education debt helps to explain why the net worth of householders under age 55 was lower in 2019 than it was in 1989, after adjusting for inflation. The net worth of householders aged 55 or older increased during those years...

Net worth of households by age of householder, 1989 and 2019 (in 2019 dollars)

	2019	1989	percent change
Total households	$121,800	$93,600	30.1%
Under age 35	14,000	16,200	-13.6
Aged 35 to 44	91,100	112,500	-19.0
Aged 45 to 54	168,800	195,100	-13.5
Aged 55 to 64	213,200	195,300	9.2
Aged 65 to 74	266,100	154,300	72.5
Aged 75-plus	254,900	144,300	76.6

Source: Demo Memo analysis of the Federal Reserve Board's Survey of Consumer Finances

50% of Americans Fear Medical Bankruptcy

There's more to fear than coronavirus. There's bankruptcy to fear as well, bankruptcy caused by mounting medical bills for treating coronavirus. Half of Americans are afraid of such a financial catastrophe. According to a Gallup survey fielded in July 2020, fully 50 percent of the public is concerned/extremely concerned that a major health event in their household could lead to bankruptcy. In 2019, a smaller 45 percent felt this way. 

Those most likely to be concerned/extremely concerned about bankruptcy due to a major health event are people under age 50 (55 percent) and non-whites (64 percent). Since 2019, the fear of bankruptcy has grown the most for these two groups as well—up 12 percentage points for non-whites, up 12 percentage points for 18-to-29-year-olds, and up 9 percentage points for 30-to-49-year-olds. Those least concerned with going bankrupt due to medical bills are people aged 65-plus (40 percent). Thanks, Medicare!

Overall, 15 percent of Americans have medical debt they will be unable to pay off in the next 12 months. Those most likely to have long-term medical debt are non-whites (20 percent), and households with incomes below $40,000 (28 percent). 

"The sharp rise in U.S. healthcare costs, which was already a significant problem for Americans before the Covid-19 pandemic, has only been exacerbated by new challenges presented by the outbreak," Gallup concludes.

Source: Gallup, 50% in U.S. Fear Bankruptcy Due to Major Health Event

Why Are So Many Households Financially Fragile?

Forty-one percent of American households say they would have trouble paying an unexpected $400 expense, according to the Federal Reserve Board's 2017 Survey of Household Economics and Decisionmaking (SHED). What accounts for this astonishingly high figure? That's what Anqi Chen of the Center for Retirement Research at Boston College wanted to find out. To determine the reasons for the financial fragility of such a large swath of the population, Chen analyzed 2017 SHED data and the 2016 Survey of Consumer Finances.

Low-income households are most likely to say they could not pay for an unexpected $400 expense. A substantial share of higher-income households also say they could not do it...

Household could not pay for an unexpected $400 expense, by household income
Under $25,000: 72%
$25,000 to $49,999: 59%
$50,000 to $74,999: 40%
$75,000 to $99,999: 34%
$100,000 or more: 17%

Chen found several reasons for this widespread financial fragility. About half of those who say they could not pay an unexpected $400 expense literally do not have $400 in their checking or savings accounts. The question is, why do those who have the money in their bank accounts feel so fragile? Because their funds are needed to pay down debt, says Chen. Student loans, installment loans, and oversized mortgages prevent many households with solidly middle-class incomes from accumulating a rainy day fund that could cover an unexpected $400 expense.

Source: Center for Retirement Research, Why Are So Many Households Unable to Cover a $400 Unexpected Expense?

Student Loans May Explain Rural Population Decline

Rural counties have been losing population in recent years and urban counties have been growing. One factor behind rural population loss is the migration of young adults from rural to urban areas. What's driving young adults away from their rural homes? Student debt may be a factor, according to a study by the Federal Reserve Board. In an analysis of how student debt affects the migration of young adults in rural areas, the Feds examined Equifax/Federal Reserve Bank of New York Consumer Credit Panel data, comparing student debt levels of young adults in rural areas with changes in their census tract of residence over a six-year time period. These are the findings...

• Young adults with student loans were less likely to remain in rural areas than those without student loans—52 percent of those with student loans were still in a rural area six years later versus 66 percent of those without student loans.
• Young adults with the greatest student loan debt were least likely to remain in rural areas—37 percent of those in the highest quartile of student loan debt were in a rural area six years later versus 73 percent of those in the lowest quartile of debt.
• Young adults who moved to metropolitan areas did better than those who stayed in rural areas. They paid down their loans faster, had higher credit scores, and were more likely to have mortgage debt (own a home).

"With students borrowing at higher rates and in larger amounts to pursue postsecondary education," conclude the Fed researchers, "student loan debt may play an increased role in the dynamics of urban-rural migration."

Source: Federal Reserve Board, Consumer and Community Context, January 2019, "Rural Brain Drain": Examining Millennial Migration Patterns and Student Loan Debt," (PDF)

Rise in Student Loan Debt Accounts for 20% of Homeownership Decline among Young Adults

If student debt had not increased between 2005 and 2014—both in prevalence and in the amount owed—there would be 400,000 additional homeowners in the 24-to-32 age group. This is the finding of a Federal Reserve Board study of the factors behind the steep decline in homeownership among young adults.

The homeownership rate of 24-to-32-year-olds fell from 45 to 36 percent between 2005 and 2014, report the Fed researchers, an 8.8 percentage-point decline. This was much greater than the 3.9 percentage-point decline for the total population. At the same time, the share of the age group that had student debt climbed from 30 to 40 percent, and the average amount owed per capita doubled from $5,000 to $10,000. The researchers calculated how much these increases reduced homeownership, estimating that there would have been 400,000 additional homeowners in the age group if student debt had remained at the 2005 level.

But the increase in student debt accounts for only 2 percentage points of the 8.8 percentage-point decline in the homeownership rate of young adults (20 percent). What accounts for the rest? The Fed researchers suggest that student loan debt affected the credit scores of young adults in the aftermath of the Great Recession. Lower credit scores made it harder for young adults to qualify for a mortgage, resulting in lower rates of homeownership.

Source: Federal Reserve Board, Consumer and Community Context, January 2019, Can Student Loan Debt Explain Low Homeownership Rates for Young Adults? (PDF)

44% of Americans Are "Revolvers"

How many Americans carry a credit card balance, and how much do they owe? The answers can be found in a study by economist Joanna Stavins of the Federal Reserve Bank of Boston. She wanted to determine the unique characteristics of credit card users and in particular those who are "revolvers" — meaning they owe a balance on their credit cards.

Stavins examined findings from the Survey of Consumer Payment Choice, comparing revolvers' self-reports of their credit card balances with the Equifax credit bureau records of individual respondents. One of her goals was to determine the accuracy of self-reported balances, and she discovered they aren't all that accurate. Self-reported credit card balances are significantly lower than the balances reported by Equifax. Overall, 44 percent of adults in 2015–16 were revolvers (carrying a credit card balance). The average balance on the credit cards of revolvers was $6,597—25 percent greater than what respondents self-reported. Here are the percentages of Americans who are credit card revolvers by age, and their average credit card balance based on Equifax records...

Credit card revolvers by age, 2015–16 (and Equifax credit card balance)
Total adults: 44% ($6,597)
Under age 25: 26% ($2,913)
Aged 25 to 34: 44% ($4,472)
Aged 35 to 44: 49% ($7,192)
Aged 45 to 54: 51% ($8,336)
Aged 55 to 64: 48% ($7,493)
Aged 65-plus: 35% ($6,261)

Actual credit card balances are higher than self-reported balances in every age group. The biggest difference is among people aged 65 or older, who report an average balance of $3,795 while Equifax data show an average balance of $6,261.

Source: Federal Reserve Bank of Boston, Credit Card Debt and Consumer Payment Choice: What Can We Learn from Credit Bureau Data?

Younger Generations More Comfortable with Debt

More than three out of four American households (77 percent) are in debt, according to the Federal Reserve Board's 2016 Survey of Consumer Finances—not much higher than the 74 percent of 1998. This small increase masks a big rise in debt among older householders...

Percent of householders aged 65 or older in debt, 2016 (and 1998)
Aged 65 to 74: 70% (51%)
Aged 75-plus: 50% (25%)

What accounts for the large increase in debt among older Americans? A National Bureau of Economic Research paper sheds light on a possible reason for the rise. The analysis examines attitudes toward debt in Sweden by birth cohort. One of the key findings is that the percentage of Swedes who are uncomfortable with debt has fallen in more recent birth cohorts. Among survey respondents born from 1921 to 1940, 83 percent reported being uncomfortable with debt. Among those born from 1941 onward, a smaller 55 to 57 percent reported feeling uncomfortable with debt. Those who are uncomfortable with debt are less likely to be in debt, the study finds.

The same attitudinal shift has likely occurred in the United States, with the older debt-wary generations having been replaced by younger cohorts less concerned with debt. "A change in attitudes toward debt is potentially relevant for understanding the recently observed increase in debt," conclude the authors.

Source: National Bureau of Economic Research, Attitudes Toward Debt and Debt Behavior, Working Paper 24935 ($5)

Student Loan Debt, 1992 to 2016

The percentage of households with student loan debt has more than doubled in the past 24 years, according to an Employee Benefit Research Institute analysis of the Federal Reserve Board's Survey of Consumer Finances. In 2016, 22.3 percent of American households had outstanding student loans, up from 10.5 percent in 1992. The percentage of households with student loans increased substantially in every age group during those years...

Percentage of households with student loans in 2016 (and 1992)
Under age 35: 44.8% (24.4%)
Aged 35 to 44: 34.3% (11.7%)
Aged 45 to 54: 23.7% (5.7%)
Aged 55 to 64: 12.9% (2.9%)
Aged 65-plus: 2.4% (1.2%)

Among households with student loans, the median amount owed has more than tripled, after adjusting for inflation—rising from $5,363 in 1992 to $19,000 in 2016. In the 35-to-44 age group, debt has quadrupled...

Median amount owed for student loans by debtors in 2016 (and 1992); in 2016 dollars
Under age 35: $18,500 ($5,363)
Aged 35 to 44: $20,100 ($4,860)
Aged 45 to 54: $20,000 ($6,201)
Aged 55 to 64: $18,000 ($12,234)
Aged 65-plus: $12,000 ($10,223)

While households with and without student loans are equally likely to have saved in a defined-contribution retirement plan, those without student loans have saved much more. Among householders aged 45 to 54 with a college degree, those without student loans had a median balance of $126,000 in their defined-contribution retirement plan in 2016. Those with student loans had a median balance of $46,000.

Source: Employee Benefit Research Institute, Student Loan Debt: Trends and Implications

Education Debt Has Become the Norm

For today's young adults, getting a college degree means going into debt, according to the Federal Reserve Board's Survey of Household Economics and Decision-making. Student loans are nothing new, of course. But in the past, most of those who went to college graduated debt free. Only 28 percent of Boomers (aged 60-plus) with a bachelor's degree, ever had to take out a student loan. Today, student debt is the norm. Among Millennials (under age 30) with a bachelor's degree, 62 percent have had to go into debt to get an education.

This is the percentage of Americans by age and highest degree completed who ever took out loans for their own education...

Some college or certificate
Under age 30: 43%
Aged 30 to 44: 39%
Aged 45 to 59: 24%
Aged 60-plus: 13%

Associate's degree
Under age 30: 54%
Aged 30 to 44: 48%
Aged 45 to 59: 35%
Aged 60-plus: 18%

Bachelor's degree
Under age 30: 62%
Aged 30 to 44: 55%
Aged 45 to 59: 48%
Aged 60-plus: 28%

Graduate degree
Under age 30: 75%
Aged 30 to 44: 64%
Aged 45 to 59: 60%
Aged 60-plus: 36%

Source: Federal Reserve Board, Report on the Economic Well-Being of U.S. Households in 2017

Gen Xers: Deepest in Debt

No generation is deeper in debt than Generation X. In part, that's because they are in the lifestage (middle age) when debt peaks. But it's also because they are the generation that was hurt the most by the Great Recession, many of them buying homes when housing prices peaked and losing wealth as housing values fell.

Only 8 percent of Generation Xers do not have some type of debt, according to TransAmerica's 18th Annual Retirement Survey of Workers. Fully 72 percent of Gen X workers say their financial priority is paying off debt, surpassing the 61 percent who say saving for retirement is a priority. Here's what Gen Xers owe...

Percent of Generation X workers with debt
66% have credit card debt
55% have a mortgage
48% have car loans
20% have student loans
16% have medical debt

The Great Recession's impact on Generation X is documented by the TransAmerica survey. Only 39 percent of workers in the generation say they either were not impacted or have fully recovered from the Great Recession. Another 38 percent say they have somewhat recovered from the Great Recession. Nearly one in four (23 percent) of Gen X workers say they have not yet begun or may never recover from the Great Recession, the largest share among the generations.

Source: TransAmerica Center for Retirement Studies, Wishful Thinking or Within Reach? Three Generations Prepare for "Retirement"

One in Five Americans Has Past-Due Medical Bills

Medical debt looms over millions. Fully 21 percent of Americans aged 18 or older had unpaid, past-due medical bills in 2016, according to a FINRA Investor Education Foundation survey.

Women are more likely than men to have unpaid, past-due medical bills—23 percent of women versus 18 percent of men. Younger adults are more likely to have past-due medical bills than older Americans. Among adults under age 55, nearly one in four (24 percent) had unpaid, past-due medical bills. Among those aged 55 or older, the figure was 14 percent.

Source: FINRA Investor Education Foundation, Financial Capability in the United States 2016

Debt Is Rising among Older Americans

Overall, 77 percent of American households were in debt in 2016—the same percentage as in 2007, according to the Federal Reserve Board's Survey of Consumer Finances. Among the oldest Americans, however, debt has soared—rising from 31 percent who were in debt in 2007 to 50 percent in 2016. Indebtedness increased among householders aged 65 to 74 too, rising from 65.5 to 70.1 percent during those years. Among householders under age 65, indebtedness did not increase.

Mortgage debt more than doubled: The percentage of householders aged 75 or older with mortgage debt climbed from 11 to 23 percent between 2007 and 2016. In every other age group, the percentage with mortgage debt fell during those years.

Credit card debt grew: The percentage of householders aged 75 or older with an unpaid credit card balance rose from 19 to 26 percent between 2007 and 2016. Among householders aged 65 to 74, the figure also increased. Among householders under age 65, the percentage with credit card debt fell.

Vehicle debt more than doubled: The percentage of householders aged 75 or older with vehicle debt grew from 6 to 14 percent between 2007 and 2016. Vehicle debt also increased among householders aged 65 to 74, but fell for every other age group except 35 to 44.

Education debt more than quadrupled: Even education debt increased among householders aged 75 or older. Although education debt is uncommon in the age group, the 1.3 percent with this type of debt in 2016 was more than four times the 0.3 percent of 2007. The percentage of households with education debt increased in every age group between 2007 and 2016.

Not only are more older householders in debt, but the amount they owe has grown since 2007, after adjusting for inflation. The median amount of debt owed by householders aged 75 or older in 2016 ($20,600) was 36 percent greater than the amount owed by their counterparts in 2007.

Source: Demo Memo analysis of the Federal Reserve Board's Survey of Consumer Finances

Boomers May Have A Debt Problem

Debt is a growing burden for Boomers nearing retirement. That's the prognosis of a National Bureau of Economic Research study, which examined three cohorts of Americans approaching retirement using data from the Health and Retirement Study—the original HRS cohort (born from 1931 to 1941), War Babies (born from 1942 to 1947), and Early Boomers (born from 1948 to 1953). With each succeeding cohort, debt has grown...

Percentage with debt and median amount of debt at age 56 to 61 by cohort (in 2015$)
HRS cohort: 64% ($6,750)
War babies: 70% ($31,250)
Early boomers: 71% ($32,700)

Mortgages are the biggest reason for rising debt among older Americans. The percentage of 56-to-61-year-olds with mortgage debt grew from 41 percent in the HRS cohort to 49 percent among Early Boomers, the researchers report. Mortgage debt is growing because each succeeding cohort has purchased more expensive homes with smaller down payments. The median value of the homes owned by Early Boomers at ages 56 to 61 was $218,000 versus the $187,000 for War Babies and the $144,000 for the HRS cohort (in constant dollars). Early Boomers were also more highly leveraged at ages 56 to 61 than were the other cohorts. Mortgage debt relative to housing value was 30 percent for Early Boomers versus 22 percent for War Babies and just 5 percent for the original HRS cohort.

"Debt among older persons may increasingly be a factor in elder bankruptcy, and even in determining lifetime wealth sufficiency and retirement security," the researchers conclude. "Our research suggests that analysts and policymakers should explore ways to enhance debt management practices as they examine factors driving retirement security."

Source: National Bureau of Economic Research, Debt and Financial Vulnerability on the Verge of Retirement, Working Paper 23664 ($5)

Who Can Count On Family for Financial Help?

Many Millennials would have a lot of trouble paying an unexpected bill of $1,000, according to a GenForward Survey, which defines Millennials as 18-to-34-year-olds. The bimonthly survey is a project of the University of Chicago and administered by NORC. The survey's purpose is to examine "how race and ethnicity influence how young adults or Millennials experience and think about the world."

Percent saying they would have a lot of difficulty paying an unexpected $1,000 bill
Asians: 28%
Blacks: 50%
Hispanics: 43%
Non-Hispanic Whites: 35%

One factor that would make it difficult for many to pay an unexpected bill is the lack of family resources. When asked whether they could turn to their family for help in paying an unexpected $1,000 bill, the percentage who say yes ranges from a low of 38 percent among Blacks to a high of 64 percent among Asians...

Percent saying they could turn to family for help paying an unexpected $1,000 bill
Asians: 64%
Blacks: 38%
Hispanics: 54%
Non-Hispanic Whites: 56%

Asians also are most likely to say their family could help with a down payment for a new car (51 percent) or house (49 percent). They are also most likely to say their family could help them with college tuition or paying off student loans (58 percent).

Source: GenForward University of Chicago: June 2017 Report

Home Equity Accounts for 32% of Net Worth

The median net worth of the average household was $80,039 in 2013, according to a recently released report from the Census Bureau's 2014 Survey of Income and Program Participation.

The 2014 SIPP includes improvements to questions designed to measure net worth, with new, topic-specific questions about types of assets such as annuities, trusts, businesses owned as investments, and educational savings accounts. Without these changes, notes the report, median net worth may have been as low as $74,083. The revised survey also included a question about student loans.

Here is the composition of net worth for American households, excluding households in the top 1 percent of net worth because their asset ownership is unlike the average...

Composition of household net worth, 2013
Home equity: 32.2%
401(k) accounts: 16.3%
IRA and Keoghs: 10.5%
Stocks, mutual funds: 9.6%
Assets at financial institutions: 9.4%
Business or profession: 5.2%
Rental property: 4.4%
Other real estate: 3.9%
Motor vehicles: 3.3%
Annuities and trusts: 3.0%
Cash value life insurance: 2.8%
Other assets: 3.6%
Unsecured liabilities: –4.7%

The 55 percent majority of households have unsecured liabilities, which include credit card debt,  student loans, medical debt, etc. Overall, 42 percent of households have credit card debt, with a median of $3,000 owed. Twenty percent of households have student loans, and those that do owe a median of $18,000.

Source: Census Bureau, Improvements to Measuring Net Worth of Households: 2013

Many Americans Have Past-Due Medical Debt

Among adults under age 65, a substantial 24 percent had past-due medical debt in 2015, according to a study by the Urban Institute. The figure varies by state, ranging from a low of 5.9 percent in Hawaii to a high of 37.4 percent in Mississippi. Among the 10 states with the highest rates of past-due medical debt, 8 are in the South...

States with largest percentage of 18-to-64-year-olds with past-due medical debt
Mississippi: 37.4%
Arkansas: 36.3%
West Virginia: 33.0%
Indiana: 32.5%
South Carolina: 32.4%
Kentucky: 30.9%
Missouri: 30.6%
Oklahoma: 30.0%
Alabama: 30.0%
Georgia: 29.2%

Hawaii is the only state in which the percentage of people aged 18 to 64 with past-due medical debt is below 10 percent. Minnesota has the second-lowest rate (13.3%), followed by California (16.0%), Massachusetts (16.1%), and Connecticut (16.3%).

Source: Urban Institute, Past-Due Medical Debt among Nonelderly Adults, 2012-15