You’d think paying off debt would feel like crossing a finish line. Instead, it’s more like running in place for a lot of Americans. Some balances shrink, others balloon, and before long, the cycle repeats itself. Want to know which debts refuse to quit? Here are 10 that just won’t let go.
Credit Card Debt
Americans collectively owe $1.209 trillion in credit card debt as of mid-2023. While early 2023 brought a 2.39% decline in balances, here’s the catch: a report by Debt.Org shows the revolving structure means borrowing never truly stops. So, punishing interest rates persist, and make credit cards the priciest consumer debt trap.
Business Loans
Small business owners frequently stake their personal assets on business loans, which creates substantial household debt risk. From term loans to credit lines and equipment financing, entrepreneurs must carefully pilot various lending options. Many resort to personal funds or tap home equity.
Mortgage Debt
Americans are carrying $12.94 trillion in mortgage debt, which, according to USAFacts, is nearly 70% of all their household obligations. Add to that a median home price of $410,800, and you’ve got a recipe for strain. Mortgage loans exploded by $131 billion in just three months during 2025.
Tax Debt
Obligations to the IRS can snowball faster into serious debt when left unpaid past deadlines. Once tax payments fall behind, penalties and interest start piling up. Missed deadlines trigger aggressive collection actions, and before long, the agency can even garnish wages directly, bypassing the courts entirely.
Student Loans
Forty-two million Americans are carrying educational loans today. The combined debt exceeds $1.6 trillion, and here’s what’s staggering: young adults, though initially reducing their obligations, now face a 3.35% delinquency rate, according to recent numbers from Kaplan Group. That weight feels inescapable.
Personal Loans
For many, personal loans are a lifeline that helps to pay off credit cards or cover home upgrades. Despite a modest 2% balance decline from 2023 to 2024 in Experian’s latest analysis, usage remains consistent. Because they’re unsecured, interest costs run higher, and repayment usually spans one to seven years.
Buy Now, Pay Later
It sounds like a great idea. Split your purchase into easy, interest-free payments and move on. But that convenience adds up. Many people open multiple Buy Now, Pay Later accounts without realizing the risks. The moment a payment’s missed, penalties appear, with your credit score taking a noticeable hit.
Home Equity Loans
Rising property values pushed home equity borrowing up 1.52% in early 2025, as outlined in Kaplan Group findings. For many, it’s an appealing way to access large sums for renovations or major expenses. Yet the comfort is deceptive; failure to repay could strip families of both financial footing and their home.
Payday Loans
Short-term payday loans appear as financial lifelines but quickly become debt traps with astronomical 300% APRs. Most borrowers end up rolling over these predatory loans repeatedly. Even in states with strict regulations, online lenders exploit digital channels to target vulnerable consumers.
Medical Debt
The sudden impact of medical expenses can devastate household finances, even with insurance coverage. High deductibles and out-of-pocket costs leave many Americans struggling. Unlike planned debts, medical bills strike without warning. About 6% of adults carry over $1,000 in medical debt today.
