# Debt Burden Shifts for 1 in 12 U.S. Families

> One in 12 American families now spends over 40% of income on debt, a level not seen since 2013.
- Title: Debt Burden Shifts for 1 in 12 U.S. Families · 24/7 Wall St.
- Summary: One in 12 American families now spends over 40% of income on debt, a level not seen since 2013. 8.6% of U.S.
- Keywords: u.s. families, debt payments, income share, federal reserve, 2025 survey, 40% debt line, median debt, credit card rates, mortgage rates, 24/7 Wall St.
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/2026/11/06/one-in-12-american-families-now-spends-more-than-40-of-income-on-debt-a-level-not-seen-in-13-years
- Author: Rich Duprey
- Published: 2026-11-06T15:28:07+00:00
- Read time: 1 min
- Topics: u.s. families, debt payments, income share, federal reserve, 2025 survey, 40% debt line, median debt, credit card rates, mortgage rates
## Debt Burden Shifts
One in 12 American families now spends more than 40% of income on debt, a level not seen since 2013.
## Debt Levels Rise
The Federal Reserve’s 2025 Survey of Consumer Finances shows 8.6% of families spend more than 40% of income on debt payments.
## Debt Share Increases
This is up from 6.5% in 2022 and the highest level since the 2013 survey.
## Debt Costs Rise
Average 30-year mortgage rates rose from 4.2% to 6.7% while credit card rates jumped from 14.6% to 21.4%.
## Auto Loans Increase
New-vehicle loan rates rose from 4.9% to 7.7% for households replacing cars in 2024.
## Median Debt Burden
The median borrower now spends 15.4% of income on debt payments, up 2.0 percentage points from 2022.
## Debt Line History
Families above the 40% debt line were 8.2% in 2013, 7.0% in 2016, 7.4% in 2019, 6.5% in 2022, and 8.6% in 2025.
## Income Gains Limited
Real median family income rose 7% to $82,200, but median net worth only edged up to $215,900.
## Spending Impact
Families with higher debt shares have less for taxes, groceries, utilities, insurance and healthcare.
## Delinquency Rates Down
Credit card delinquency rates fell to 2.85% from 2.95% in late 2025, with no recession forecast.
## Three Moves to Check Debt
Calculate debt ratio, pay off highest interest debt first, and clear consumer debt before retiring.
## Key takeaway

8.6% of U.S. families now spend more than 40% of income on debt payments, up from 6.5% in 2022.