Americans' debt problems are flashing a warning not seen since the Great Recession

Key Points:

• The Federal Reserve's Survey of Consumer Finances revealed that U.S. families' ability to keep up with debt payments deteriorated sharply over the past three years, reaching levels not seen since the aftermath of the 2008 financial crisis.
• The share of families behind on loan payments rose from about 12% to nearly 20% by the end of 2025, with those behind by two months or more increasing from 5% to over 8%.
• Debt-to-income ratios worsened, with families having payment-to-income ratios above 40% increasing to 8.6%, the highest since 2013, while net worth gains were concentrated among higher earners, whose median net worth rose 31%.
• Income inequality slightly decreased as median income increased 7% overall, but average income dropped 6%, with notable declines for Black non-Hispanic, Asian, and top-income families, as well as significant income losses for those aged 35 to 44.
• Wealth disparities persisted, with college graduates earning nearly twice the median income and almost three times the net worth of those with some college education, while lower-income families experienced declines in median and average net worth.