Quartz reported that “nearly one in five American families had fallen behind on debt payments” by late 2025. The Federal Reserve revealed this troubling trend in its latest Survey of Consumer Finances. Delinquency rates have now reached their highest levels since 2010. That earlier spike occurred as the country emerged from the Great Recession. The debt delinquency rate jumped to nearly 20 percent, up from 12 percent in 2022. Furthermore, families overdue by at least two months increased from 5 percent to over 8 percent.
Debt obligations are actively consuming an alarming portion of ordinary household earnings. Families spending over 40 percent of income on debt reached 8.6 percent. That proportion sat at 6.5 percent during the prior 2022 survey. Quartz noted that this represents “a figure not seen since the 2013 survey.” The University of Chicago’s NORC conducted the extensive nationwide survey for the central bank. Their researchers evaluated financial data gathered across 119 distinct geographic areas.
Quartz highlighted that “despite the deterioration in debt repayment, other financial indicators showed improvement.” Real median family income climbed 7 percent to $82,200 between survey periods. Real median household net worth rose 2 percent to reach $215,900 nationwide. Mean net worth increased by 7 percent, reaching $1.24 million across the country. Meanwhile, the national homeownership rate held steady at roughly 66 percent. Median housing equity grew from $218,900 up to $230,000. Retirement account participation edged upward to approximately 65 percent of American workers. Stock portfolios among equity owners also expanded 36 percent to a median of $77,400.
However, income growth remained deeply uneven across demographic groups. Households led by individuals aged 75 and older enjoyed substantial income gains. Conversely, Americans aged 35 to 44 experienced a severe 25 percent income reduction. The central bank attributed that steep decline to diminished capital gains. Median earnings also fell among Black and Asian families during the same timeframe.
Quartz emphasized that the findings “add to a pattern of mounting financial strain on American households.” Total national household debt climbed to a record $18.8 trillion late last year. Credit card balances hovered near record territory at $1.26 trillion in mid-2026. FHA mortgage delinquency rates reached levels last observed around 2012. Student loan delinquencies accelerated after federal payment pauses officially expired. Quartz reported that “delinquency rates climbing across income levels” now impact both low-income and affluent communities. Persistent borrowing costs continue to place severe pressure on family finances nationwide.
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