The ability of U.S. households to keep up with debt payments deteriorated significantly through 2025, reaching levels not seen since the aftermath of the Great Recession, according to the Federal Reserve’s latest Survey of Consumer Finances, CNBC reports.
Nearly 20% of families were behind on loan payments, up from about 12% in 2022, while more than 8% were at least two months behind, compared with 5% three years earlier. The share of families whose debt payments exceeded 40% of their income also increased to 8.6%, up from 6.5% in 2022 and the highest level since 2013.
The findings come amid persistent inflation and growing concerns about household finances, with a separate New York Fed survey indicating Americans believe their financial situations have worsened over the past year.
Despite mounting debt pressures, inflation-adjusted median family income rose 7% over the period, while average income declined 6%, reflecting uneven financial outcomes. Income inequality narrowed slightly, as lower-income families generally recorded modest income gains while some higher-income groups experienced declines.
However, wealth disparities persisted. Median net worth rose just 2% to $215,900, while average net worth increased 7% to $1.24 million, reflecting stronger gains among wealthier households. Families in the top income group saw median net worth increase 31%, while those in the bottom quarter of the income distribution experienced a 6% decline in median net worth and a 4% drop in average net worth.
Education also remained closely tied to financial outcomes: Households with college degrees had 1.9 times the median income and nearly three times the median net worth of those with some college education.
