(NewsNation) — There are many ways consumers can accrue debt, from expensive purchases like a house or a car to getting a divorce or a lack of money management skills.

One person’s average debt equals more than half of the median American household income.

Total credit card debt rose to a record $1.17 trillion in the third quarter, according to the New York Federal Reserve. That’s up $24 billion from the previous quarter and more than 8% higher than a year ago.

People living in the 50 most populous U.S. cities carry an average nonmortgage debt of close to $38,000, according to a LendingTree analysis. This figure excludes home loans but includes car, student, credit cards and personal loans. Meanwhile, the median household income hovers around $75,000.

Auto loan amounts outpace student loan amounts, making it the largest nonmortgage debt in over half of the metro cities analyzed, according to LendingTree, which reviewed anonymized credit reports of about 210,000 users from April 1 through June 30.

Financial experts have identified several key factors that commonly lead to personal debt, with low income and unexpected expenses topping the list of financial challenges facing many households.

Underemployment or low income

Individuals working in lower-paying jobs often struggle to build savings or meet monthly obligations, leaving them vulnerable to financial emergencies. Living paycheck to paycheck can quickly spiral into debt when unexpected bills arise.

Medical expenses

In a 2022 study, the Consumer Financial Protection Bureau found that roughly 20% of U.S. households report that they have medical debt, with collections appearing on 43 million credit reports.

Anxiety over health care costs cuts across all ages, but a new report says millennials and Generation Zers are feeling it especially hard. The study commissioned by the insurance firm Assurance IQ finds that 67% of Gen Z and 62% of millennials report avoiding seeking health care because of the cost. That compares to 46% of all Americans who skipped seeking care last year.

Student loans

A report says that a fifth of all people with outstanding student loans aren’t making payments. Some say they can’t afford the payments, but many others say they’re holding out for another round of forgiveness by Uncle Sam.

Federal student loan interest rates for 2024-25 are now live. Some have reached record highs, increasing the cost of college for people who will take out student loans for the upcoming school year.

Child care expenses

Sending two kids to day care is about 40% more expensive than rent across the nation’s 100 largest metros, according to a LendingTree study.

The analysis determined that the average monthly cost of full-time center-based child care for an infant and a 4-year-old is $2,182. That’s 39.4% higher than the average rent for a two-bedroom unit, which is $1,566.

Lack of emergency savings

One in 4 Americans has no emergency fund as more people reported having less savings than before the pandemic, according to a Bankrate July 2021 Emergency Savings survey.

More than half reported having less than three months in savings. The numbers get worse depending on the age and income of those surveyed.

Financial advisors recommend building an emergency fund to cover unexpected expenses and seeking professional guidance when debt becomes unmanageable.

Life changes like divorce

Major life changes, particularly divorce, emerged as another significant debt trigger. The shift from a dual to a single income, combined with legal fees and potential support payments, can create severe financial strain.

High living costs

High housing costs and living above one’s means are leading many into debt. Financial advisors stress the importance of budgeting and living within one’s means to prevent debt accumulation.

Skyrocketing insurance rates, higher utility bills and soaring maintenance expenses have pushed the cost of owning a home up 26% over the past four years.

Owning and maintaining a typical U.S. single-family home now costs $18,118 a year, according to a new analysis from Bankrate. In 2020, comparable expenses were $14,428 annually.

High prices have the newest addition to the world’s workforce opting out of job offers, a new report revealed. One in 10 unemployed respondents said they’ve had to turn down jobs because of pricey uniforms, work-appropriate clothes, transportation, rent and more.

Bad money management, credit card misuse

Credit card misuse continues to be a persistent problem. While store cards and interest-free deals may seem attractive, experts warn that failure to manage these obligations can lead to mounting debt.

They recommend consulting credit card providers about debt management plans and seeking advice from organizations like Citizens’ Advice.

NewsNation’s Damita Menezes, Andrew Dorn, Ashley Soriano, Rich Johnson and Anna Kutz contributed to this report.