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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, the highest rate 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 a 60% rise in families at least two months late on bills over the past three years.
- Rising costs for essentials like gas and groceries, which outpaced income growth, have forced many consumers to rely more heavily on debt, despite not anticipating such economic shocks when borrowing.
- Since 2016, the cost of living has surged 39%, while median household income rose only 13%, leading to widespread paycheck-to-paycheck living, even among higher earners making over $300,000 annually.
- Financial insecurity is widespread, with 40% of households lacking full confidence in affording basic needs such as food, utilities, housing, and transportation, according to recent studies.
