The Federal Reserve reported on Friday that U.S. families are facing worsening debt repayment problems, according to its latest Survey of Consumer Finances.
Key Findings: Delinquency and Debt‑to‑Income Ratios Climb
The survey found that nearly 20% of households were behind on loan payments in 2025, up from about 12% in the prior survey. Meanwhile, the share of families whose debt payments exceed 40% of income rose to 8.6%, compared with 6.5% in 2022.
The Federal Reserve stated, “Families were more likely to be behind on their financial obligations than at any point since the 2010 survey.”
Drivers: Inflation and Higher Interest Rates
Analysts attribute the trend to higher inflation and rising interest rates, which have increased the cost of borrowing across mortgages, auto loans, and credit cards.
About the Survey
The Federal Reserve’s Survey of Consumer Finances is conducted every three years and provides a detailed snapshot of American household balance sheets.
