Americans' Debt Problems Are Flashing a Warning Not Seen Since the Great Recession
Researchers found that while wealth disparities narrowed somewhat, the ability to meet debt payments deteriorated significantly.
TL;DR
- U.S. families' ability to stay current on debts has worsened over the past three years, reaching levels not seen since after the global financial crisis.
- The proportion of families behind on loan payments at the end of 2025 rose to nearly 20%, a significant increase from the previous survey.
- Families with payment-to-income ratios greater than 40% also increased, reaching their highest level since 2013.
- While wealth disparities narrowed somewhat, higher earners saw their net worth soar, with the top income group's median net worth rising 31%.
- Median family income increased by 7%, but average income dropped 6%, indicating a slight decrease in income inequality.
- Older families (75+) saw income gains, while those aged 35-44 experienced a 25% drop, attributed to declines in capital gains income.
- Black non-Hispanic, Asian, and families at the top of income and net worth distributions saw both median and mean income fall.
- Inflation-adjusted average net worth increased 7% to $1.24 million, but median net worth rose only 2% to $215,900.
- Significant disparities exist based on education levels, with college graduates earning significantly more and holding more net worth than those with some college.
- Lower-income families saw declines in wealth, while higher-income families saw gains.