American families are increasingly indebted: nearly 20% were behind on payments at the end of 2025

Nearly 20% of families in the United States were behind on their financial obligations at the end of 2025, up from approximately 12% in 2022, according to the triennial Survey of Consumer Finances conducted by the Federal Reserve. The roughly 67% increase points to a significant deterioration in households’ ability to repay their debts.

The share of families at least two months behind on loan payments rose from 5% to more than 8%, the highest level recorded since the 2010 survey. The situation is comparable to the period following the Great Recession of 2007–2009, when the U.S. unemployment rate reached 10%.

The debt burden relative to income has also intensified. The proportion of households allocating more than 40% of their income to financial obligations rose to 8.6%, from 6.5% in 2022, reaching its highest level since 2013.

The data nevertheless show uneven changes in wealth. The median net worth of high-income families increased by 31%, while across all households, median net worth rose by just 2%, to $215,900. Low-income families recorded a 6% decline in median net worth.

The differences also persist by education level: families with completed college degrees had a median income 1.9 times higher and median net worth nearly three times greater than those with incomplete college education. A recent survey by the New York Fed shows that Americans expect their financial situation to worsen over the next 12 months as well.