Here's the headline version: American household debt is basically unchanged this year, holding steady at $104,755 per person according to Experian's latest report. Sounds like good news in a year dominated by inflation worries and rising costs, right?

Not exactly. That stable number is doing some heavy lifting to hide what's actually going on.

When Flat Doesn't Mean Fine

Mortgages are up. Auto loans are up. Credit card balances are up. The only reason the national average didn't climb is that student loan balances took a temporary dip thanks to one-time discharges. Strip that out, and households would look considerably more strained.

But here's the detail that financial advisors really need to watch: HELOC balances jumped 9% this year. That's a meaningful move, and it's happening for two very different reasons. Some homeowners are using home equity lines strategically, consolidating higher-rate debt or funding renovations. Others are tapping equity because their monthly cash flow is getting squeezed, even as their home values climb.

For advisors, figuring out which scenario applies matters a lot. A HELOC can be smart financial planning or a red flag that someone's budget is cracking.

Credit Scores Tell Two Stories

Debt is rising at both ends of the credit spectrum, but for completely different reasons. High-score borrowers tend to be taking on debt intentionally: financing electric vehicles, home improvements, or locking in favorable loan terms. Lower-credit borrowers, meanwhile, are dealing with higher interest rates, limited refinancing options, and fewer ways to reduce their monthly obligations.

The good news? More Americans are climbing into higher credit tiers. The share of people with FICO scores above 740 rose from 46.5% to 50.3%. But zoom in and the picture gets messier. Gen Z saw the biggest debt increases over the past year. Geographically, Colorado leads the nation with average household debt of $155,000, while West Virginia sits at the bottom with $63,000.

So yes, consumer debt looks "flat" this year. But the story isn't about the total—it's about how and why people are borrowing. Whether it's HELOC surges or generational pressure points, households are feeling the squeeze, even if the top-line number doesn't scream it.