Recent data from the Federal Reserve indicates that the ability of U.S. households to manage their debt obligations has deteriorated significantly over the past three years, reaching levels not witnessed since the aftermath of the Great Recession.
The central bank’s latest Survey of Consumer Finances, released on Friday, revealed that the percentage of families delinquent on loan payments jumped from approximately 12% in the previous survey to nearly 20% by the end of 2025. This represents a surge of about 67%. The rate of severe delinquency, defined as payments missed for two months or more, also climbed from 5% in 2022 to over 8%.
These figures mark the highest delinquency rates since the 2010 survey, a period when the nation was still recovering from the global financial crisis that saw unemployment peak at 10% and the subprime mortgage collapse ripple through major financial institutions.
Additionally, the share of families with debt-to-income ratios exceeding 40% rose to 8.6%, up from 6.5% in 2022 and the highest level recorded since 2013.
However, the report highlighted a contrasting trend in wealth accumulation. Families in the top income bracket experienced a 31% increase in median net worth during the same period. While overall income inequality decreased slightly, with lower-income families seeing modest gains and upper-income groups facing declines, significant disparities remain.
Real median family income increased by 7%, adjusted for inflation, whereas average income fell by 6%. The report noted that income growth was particularly robust for families aged 75 and older, while it dropped by 25% for those aged 35 to 44, a decline attributed to reduced capital gains.
Total net worth saw a modest inflation-adjusted rise, with average net worth growing 7% to $1.24 million and median net worth increasing 2% to $215,900. Educated households continued to outperform; those with college degrees held nearly three times the median net worth of individuals with some college education.
The findings emerge against a backdrop of persistent economic growth and inflation rates not seen since the early 1980s, suggesting that while the broader economy expanded, financial stress intensified for a growing portion of American households.
Post-Great Recession levels again? This economic recovery leaves a lot of people behind. The wealth gap must be widening dramatically now.
College grads have triple the net worth. Education still pays off, but can regular people keep up with these rising debt-to-income ratios?
Interesting that older families saw income growth while those 35-44 dropped 25%. Where are the opportunities for my age group then?
Wow, a 67% surge? I was unaware it had gotten this bad so quickly. The severe delinquency stats are particularly worrying for families.
Almost 20% delinquency is alarming. It feels like the rich get richer while everyone else is drowning in payments.