Key takeaways
- US loan delinquencies rose sharply to 19.6%
- Serious payment delays climbed to 8.2% of borrowers
- Household wealth increased despite worsening consumer debt stress
Nearly one in five indebted American families reported falling behind on loan payments, according to new Federal Reserve data, marking the highest share since 2010 even as household wealth continued rising.
The Fed's 2025 Survey of Consumer Finances, released October 9, found that 19.6% of borrowing families reported at least one late payment during the preceding 12 months, compared with 12.2% in 2022.
More serious delinquencies also increased. The share of indebted families reporting payments at least 60 days late rose from 4.9% to 8.2%, highlighting mounting pressure on American borrowers.
US Loan Delinquencies Hit 19.6% as Debt Burdens Rise
The deterioration comes despite little change in the percentage of American families holding debt.
Approximately 77% of families had outstanding debt in 2025, broadly unchanged from 2022. However, the cost of servicing those obligations increased considerably.
Among indebted families, the median debt payment-to-income ratio climbed from 13.4% to 15.4%.
Meanwhile, 8.6% of all families devoted more than 40% of their income to debt payments, up from 6.5% in the previous survey.
That marked the highest proportion since 2010, according to the Federal Reserve.
The findings suggest that many borrowers are struggling with monthly obligations even though overall debt balances have not increased substantially.
Higher borrowing costs have contributed to that pressure. The average credit card interest rate increased from 14.6% in 2022 to 21.4% in 2025.
For lenders, rising delinquencies can translate into higher credit losses, particularly when borrowers already carry expensive revolving balances.
The latest figures also help explain why credit card issuers must balance interest income against the risk that customers cannot repay their balances.
American Household Wealth Rises Despite Growing Financial Stress
One of the survey's most striking findings is that financial distress increased while the typical American family became wealthier.
Inflation-adjusted median family net worth rose 2% between 2022 and 2025, reaching $215,900.
Median family income increased even faster, climbing 7% to $82,200.
However, those improvements were not distributed evenly. Families in the bottom quarter of the wealth distribution experienced substantial declines in net worth, while older and wealthier Americans generally benefited from rising asset prices.
Households headed by people aged 75 or older recorded a 37% increase in median wealth. By comparison, families headed by people younger than 35 experienced a 23% decline.
The contrast highlights an important distinction between financial wealth and available cash.
A family can own appreciating stocks or real estate while still lacking sufficient monthly income to cover mortgage payments, credit cards and other expenses.
The Fed noted that wealth tied up in illiquid assets may not be readily available to meet debt obligations.
What Rising US Loan Delinquencies Mean for the Economy
The findings raise questions about the sustainability of consumer spending, which accounts for roughly two-thirds of US economic activity.
When households devote more income to debt payments, they have less flexibility to spend on discretionary purchases.
That can eventually affect retailers, lenders and businesses dependent on consumer demand.
However, the survey does not establish that a nationwide credit crisis is underway. It measures families' reported experiences over a preceding 12-month period rather than providing a real-time delinquency rate for October 2026.
The Fed also found that the share of families declaring bankruptcy during the previous five years remained relatively stable at 1.4%.
