California residents are facing one of the heaviest lifetime debt burdens in the United States, with total repayments averaging $2.56 million per person, according to recent analysis. That figure is 43% higher than the national average, underscoring the outsized financial pressure tied to housing and long-term borrowing in the state.
Housing costs are the primary driver. In California, lifetime mortgage repayments alone average $1.84 million, accounting for 72% of total lifetime debt. High home prices and the common pattern of purchasing two homes over a lifetime significantly amplify long-term borrowing compared with other states.
In contrast, states with lower housing costs show dramatically smaller mortgage burdens. In West Virginia, lifetime mortgage repayments average about $784,000, less than half of California’s total.
Nationwide figures show a similar pattern, though at lower levels. Across the U.S., average lifetime mortgage repayments stand at $1.11 million, representing roughly 62% of total lifetime debt.
Other forms of borrowing trail far behind housing debt. Credit card balances account for $387,985, or about 22% of lifetime debt, while auto loans total $245,297, representing 14%. Student loans, often assumed to be a major burden, average just $35,668, or 2% of total lifetime debt.
Debt accumulation varies sharply by age. During college years, average debt hovers around $5,700, largely from student loans. Upon graduation, repayment obligations push average debt quickly to about $42,000. By age 30, auto purchases raise the figure further to approximately $51,000.
The most dramatic jump comes with homeownership. Average debt surges to roughly $320,000 at age 38, aligning with the typical timing of a first home purchase. Over the next two decades, balances gradually decline as loans are repaid.
However, debt often rises again in the early 60s, when many households purchase a second home. Assuming a 15-year mortgage, average debt peaks near $370,000 around age 61, the highest point in a lifetime.
By retirement age 67, average cumulative debt falls to about $213,000. In later years, most mortgage and auto loans are paid off, leaving primarily revolving debt. At that stage, seniors carry an average of just $6,700 per year in credit card balances.
BY HOONSIK WOO [woo.hoonsiK@koreadaily.com]
