A new report has found that throughout the course of this year, Americans have been able to reduce their mortgage and non-mortgage debt by 11%.
The report comes from LendingTree, which analyzed 300,000 credit reports to track the changes in debt balances across the country.
LendingTree found that Americans were able to reduce their non-mortgage debt this season by 10.6%, dropping from $40,470 to $36,167 in all 50 states.
Total debt, which included mortgages, decreased slightly by 0.5%, falling from $135,166 to $134,495.
For personal loans and auto loans, Americans saw more significant declines, with personal loan balances falling by 33% and auto loan debts decreasing by 14.9%.
LendingTree’s chief credit analyst, Matt Schulz, shared there are several reasons for debt falling, not necessarily Americans making more money and paying off their bills. Instead, he suggests that it could be their unwillingness to take on more debt.
“As vehicle prices and financing rates have risen in recent years, auto debt has as well,” Schulz said. “However, it’s possible that Americans may have recently hit a financial tipping point and are no longer as willing to take on debt for that new car, truck, or SUV as they have been.”
Similar results were seen for student loans, which saw debt totals drop by 10.5% across the country.
Several states were found to be leading the way in reducing debt. The top three with residents reducing non-mortgage debt were Iowa (17.8%), Maine (17%), and New Hampshire (17%).
While the rise in prices has cooled this year, Americans are still changing the way they spend and save.
Schulz also shared in the report that Americans could be reducing how much money they borrow because of the high interest rates the Federal Reserve has put in place.
“It’s likely that consumers have focused on paying down high-interest debt in response to rising rates,” Schulz said. “They may also be feeling more cautious about their finances, putting off big-ticket purchases like home renovations that often require borrowing. There’s rarely one single reason behind a debt decrease, but it’s clear that many are taking steps to manage their finances more cautiously.”