Utah's household debt is up 34%. Is that bad news for our wallets?

SALT LAKE CITY — Utahns are borrowing more money. A lot more.

Household debt in Utah has jumped 34% since 2019, well above the national increase of about 23%. In fact, only our neighbors to the north, Idaho, saw a bigger increase, according to an analysis by Smart Debt Relief.

But where that money is going may be just as important as how much we're borrowing, said Shane Stewart, a financial planning professor at Utah Valley University.

"Housing costs are the thing that grabbed the headlines," Stewart said. "Housing costs are the thing that most people are experiencing."

Buying a home in Utah is expensive, and it's helping push household debt through the roof. Stewart said borrowing to buy a home can help build wealth, but there's a catch.

"It might be good debt that you have. The trick would be not necessarily to look at the ratios based on what financial planners say, but what works for you. Are you looking at a home that will make you home poor?"

Credit card debt tells a different story. It has jumped 34.4% in Utah since 2019, compared with 28.3% nationally. And 9.45% of Utah credit card balances are at least 90 days past due, up from 5.84% in 2019, according to a separate Smart Debt Relief analysis.

Stewart says Utah's economy is in a strong position where people do feel like they're able to take on more debt for both needs and wants.

"Consumer sentiment is powerful," Stewart said. "I feel like my job is secure. I feel like the economy's secure."

Sometimes sentiment can even trump the numbers, Stewart says, which show Utahns are taking on a lot more debt these days.

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