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US families are behind on bills at rate not seen since Great Recession of 2008
The Independent • • business
Key Points:
- Nearly 20% of American households are behind on loan payments, a rate not seen since the 2008 Great Recession, according to a Federal Reserve survey of 4,367 families.
- Median household debt increased from $170,200 in 2022 to $183,600 in 2025, with the number of families at least two months late on bills rising 60% over three years.
- Rising living costs, including a 39% increase since 2016, have outpaced median household income growth of 13%, forcing many Americans, including high earners, to live paycheck-to-paycheck.
- Economic shocks such as unexpected spikes in gas prices and groceries have disrupted borrowers' repayment plans, contributing to widespread financial distress and increased loan defaults.
- About 40% of households lack full confidence in affording essentials like food, utilities, housing, and transportation, reflecting growing financial insecurity among U.S. consumers.
