Northwestern Mutual Study Finds Chicago Residents Who Carry Personal Debt Owe an Average of $21,000 Exclusive of Mortgages, Slightly Less than the National Average

The average Chicago resident's personal debt exclusive of mortgages is $21,000, just slightly less than the national average of $21,800, according to the latest findings from Northwestern Mutual's 2023 Planning & Progress Study.

But there's a second story here, about two very different experiences with debt. Forty-one percent of Chicago residents say they're carrying close to or at their highest level of debt ever. At the same time, 37 percent of Chicago adults who have personal debt say they're currently carrying close to or at their lowest level of debt ever.

"Debt continues to be a challenge for many Chicago families in today's economic environment, but we're pleased to see many managing it effectively," said Alap Patel, wealth management advisor with Northwestern Mutual in Chicago. "Having a financial plan developed in partnership with a trusted financial advisor is key to managing debt and meeting financial goals in the future."

The primary source of personal debt in Chicago can be found right in people's wallets. According to the study, credit cards account for nearly three times any other single source of personal debt.

Top Source of Personal Debt in Chicago

- Credit cards (29%)

- Car loans (10%)

- Medical debt (9%)

- Personal education loans (6%)

- Home equity loans / lines of credit (6%)

- Educational expenses for children / family members (5%)

Chicago residents who carry personal debt say 29% of their monthly income goes toward paying it off, just below the national average of 30%. Most also expect to be in debt for years.

How Long Chicago Residents Expect to Be in Debt

- 1-5 years (45%)

- 6-10 years (18%)

- 11-20 years (13%)

- For the rest of my life (11%)

- Don't know (14%)

With respect to priorities, the research found that most Chicago residents' instincts are to get out of debt before building savings. Fifty-nine percent say they prioritize paying down debt versus 41 percent who put saving first. Also, 59 percent have a specific plan to pay down debt, compared to 41 percent who do not.

In forthcoming data sets, the 2023 Planning & Progress Study will explore wide-ranging issues facing Americans spanning professional advice, inter-generational conversations, financial wellness and more.

About The 2023 Northwestern Mutual Planning & Progress Study

The 2023 Planning & Progress Study was conducted by The Harris Poll on behalf of Northwestern Mutual among 2,740 U.S. adults aged 18 or older. The survey was conducted online between February 13 and March 2, 2023. Data are weighted where necessary by age, gender, race/ethnicity, region, education, marital status, household size, household income, and propensity to be online to bring them in line with their actual proportions in the population. A complete survey methodology is available.

About Northwestern Mutual

Northwestern Mutual has been helping people and businesses achieve financial security for more than 165 years. Through a comprehensive planning approach, Northwestern Mutual combines the expertise of its financial professionals with a personalized digital experience and industry-leading products to help its clients plan for what's most important. With more than $570 billion of total assets being managed across the company's institutional portfolio as well as retail investment client portfolios, nearly $35 billion in revenues, and $2.2 trillion worth of life insurance protection in force, Northwestern Mutual delivers financial security to more than five million people with life, disability income and long-term care insurance, annuities, and brokerage and advisory services. Northwestern Mutual ranked 111 on the 2023 FORTUNE 500.

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM), Milwaukee, WI (life and disability insurance, annuities, and life insurance with long-term care benefits) and its subsidiaries. Subsidiaries include Northwestern Mutual Investment Services, LLC (NMIS) (investment brokerage services), broker-dealer, registered investment adviser, member FINRA and SIPC; the Northwestern Mutual Wealth Management Company® (NMWMC) (investment advisory and services), federal savings bank; and Northwestern Long Term Care Insurance Company (NLTC) (long-term care insurance). Not all Northwestern Mutual representatives are advisors. Only those representatives with "Advisor" in their title or who otherwise disclose their status as an advisor of NMWMC are credentialed as NMWMC representatives to provide investment advisory services.