Fed Survey Finds Nearly 1 In 5 Families Behind On Loan Payments, Highest Level Since 2010
By CU Today Staff —
WASHINGTON—Nearly one in five American families reported being behind on loan payments in 2025, a sharp increase from just three years earlier and the highest level since 2010, according to a new Federal Reserve survey that found growing financial stress despite gains in household income and wealth.
The Fed's 2025 Survey of Consumer Finances, released in October, found the share of families behind on loan payments jumped from approximately 12% in 2022 to nearly 20% in 2025. More than 8% reported being at least two months behind, compared with 5% in 2022. The percentage of families whose debt payments exceeded 40% of their income also increased, from 6.5% to 8.6%, reaching a level last seen in the 2013 survey.
The deterioration came even as inflation-adjusted median family income increased 7% to $82,200 and median net worth rose 2% to $215,900. However, the Fed found that the median debt payment-to-income ratio climbed from 13.4% to 15.4%, potentially reflecting higher interest rates on mortgages and consumer loans. The share of families carrying credit card balances remained near 45%, but the average outstanding balance among those families rose from $6,700 to $8,000.
The survey also revealed widening differences in financial fortunes across generations. Families younger than 35 experienced a 23% decline in median net worth, to $33,000, while those 75 and older saw median wealth jump 37% to $504,900. The Fed attributed much of the decline among younger families to reductions in business equity, while increased retirement account values helped drive gains among older households. Housing affordability remained near historic lows, with the median home valued at more than 4.5 times median family income.
Other findings pointed to changing savings and investment patterns. Median balances in checking, savings and other transaction accounts declined 6% to $8,200, while the percentage of families holding certificates of deposit increased from 6.5% to 10.7%. Meanwhile, 37% of families said they did not have a good idea of what their income would be in the coming year, the highest percentage recorded in the survey. The Fed's findings suggest that even as household balance sheets have improved overall, a growing segment of consumers is struggling to keep up with financial obligations.
Originally reported by CU Today.