U.S. Household Debt Delinquencies Reach Highest Levels Since 2010, Fed Survey Shows
A new Federal Reserve survey shows American household debt delinquency rates jumped to nearly 20% by the end of 2025, reaching the highest levels since 2010 amid high inflation.
American households' ability to service their debt deteriorated between 2022 and 2025, reaching levels unseen since the aftermath of the global financial crisis, according to data released Friday by the Federal Reserve. The Survey of Consumer Finances, published triennially by the U.S. central bank, found that while wealth gaps narrowed slightly, the capacity to meet debt obligations weakened significantly.
Debt Delinquencies Surge to Highest Level Since 2010
"Families were more likely than ever since the 2010 survey to fall behind on their financial obligations," the report stated. The 2010 survey marked the period when the U.S. was recovering from the Great Recession. According to the new data, the share of families lagging behind on loan payments jumped from roughly 12% in the previous survey to nearly 20%, an increase of about 67%.
Furthermore, the share of households falling behind by two months or more spiked sharply to over 8%, compared to 5% in 2022. Debt burdens relative to income also worsened. The proportion of families where monthly debt payments exceed 40% of income jumped to 8.6%, up from 6.5% in 2022—the highest level recorded since 2013.
"Families were more likely than ever since the 2010 survey to fall behind on their financial obligations."
Income Growth and Wealth Inequality
The period surveyed was characterized by sustained economic growth, alongside inflation rates not seen since the early 1980s. Against this backdrop, real median family income rose by 7%, while average income fell by 6%. Meanwhile, the wealth of top earners surged, with the median net worth of the highest income tier increasing by 31%.
Overall, net worth continued to rise. Average net worth, adjusted for inflation, grew by 7% to $1.24 million, but median net worth rose by just 2% to $215,900—a gap reflecting the gains concentrated at the top. The report noted that the pace of net worth growth was "much slower" than that recorded in the previous survey covering 2019–2022.