The average American had $105,056 in debt in 2024, according to Experian, the largest credit bureau in the U.S.

Here are some highlights of the report:

• Debts of almost every type were higher in 2024 than in 2023. That's to be expected, given that prices rose by 2.9% last year.
• The average mortgage balance was $252,505.
• The average student loan balance was $35,208, down 9.2% thanks in part to federal student loan forgiveness.
• The average auto loan balance was $24,297.
• The average credit card balance was $6,730.

These numbers don't tell the whole story, though. Owing less than average doesn't mean you're doing "better" than most, and owing more isn't necessarily bad, either.

Here's how to tell if your debts are too high or not.

Look at your interest rates

The makeup of your debt says a lot about your financial health. Mortgages have pretty low interest rates, for example, while the APRs of credit cards are extremely high.

Let's say you have $300,000 in total debt:

• A $250,000 mortgage with an APR of 5%
• A $30,000 student loan with an APR of 7%
• A $20,000 auto loan with an APR of 8%

Although your total debt is much higher than average, the average interest rate on all your debt is 5.4%, which is pretty low.

If we used the same example, except you had no mortgage and $15,000 in credit card debt at a 22% APR, then your total debt would be $65,000 -- much lower than average. However, your average interest rate would be almost 10.8%, which means your debt is costing you an awful lot in interest.

Have a lot of unpaid credit card debt? Check out our list of the best balance transfer cards and see if you could pay 0% APR on your credit card bills for 12 months or longer.

Find your debt-to-income ratio

Carrying a lot of debt isn't necessarily bad if your average interest rate is low and you have no trouble paying all your bills. Ideally, you're spending no more than 35% of your income on monthly debt payments.

The percentage of your income that you spend on debt repayment is called your debt-to-income ratio. Here's how to calculate it:

1. Add up all your monthly debt payments. If you don't have a mortgage, use your rent instead. For credit cards, use the minimum payment.
2. Divide that total by your monthly income (before taxes)

If the result is 0.35 or less, then you're likely doing fine. You should have plenty of income left over to cover your other expenses and save for retirement. However, if it's above 35%, then your budget may be tight -- and you may not be able to get the best terms on new loans.

Don't compare yourself to the average

The average debt of $105,000 looks like peanuts to someone who has a low-APR mortgage and makes $200,000 a year. But that amount of debt could be disastrous for someone who earns $50,000 a year and owes a lot of money to credit card companies.

If your average interest rate and your debt-to-income ratio are high, then make debt repayment your No. 1 priority.

To get rid of credit card debt faster, see if you qualify for a balance transfer credit card. For a fee, you can move your existing balances to a new card that charges an intro 0% APR for 12 months or more. Without new interest charges piling up, you'll have more room in your budget to pay off that balance before the 0% APR period ends.

Another option is a debt consolidation loan. This is a type of personal loan that gives you a lump sum of money to pay off other debts. Of course, you then have to repay the new loan -- but it may have a much lower interest rate than your previous debts. If your credit score is good, then you may be able to get a debt consolidation loan with an APR less than half what you're paying on a credit card. And the lower your APR, the more you stand to save over the course of your debt repayment.