From 24/7 Wall St. · Rich Duprey · · 1m 40s
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.
In brief
One in 12 American families now spends over 40% of income on debt, a level not seen since 2013. 8.6% of U.S. families now spend more than 40% of income on debt payments, up from 6.5% in 2022. Originally reported by 24/7 Wall St..
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.
What matters most
8.6% of U.S. families now spend more than 40% of income on debt payments, up from 6.5% in 2022.
