U.S. debt delinquency reaches 15-year high

Recent data from the Federal Reserve indicates that nearly 20 percent of American families fell behind on debt payments by late 2025, a significant increase from 12 percent in 2022. This delinquency rate marks a 15-year high, approaching levels seen during the Great Recession era.

Specific areas of concern include auto loans, which have reached record delinquency levels, and credit card balances, with nearly 13 percent considered seriously past due. Additionally, student loan delinquencies have risen following the conclusion of pandemic-era protections. Approximately 9 percent of households are now spending more than 40 percent of their income on debt repayment, a proportion not seen since 2010.

While debt repayment is struggling, some broader financial indicators show improvement. The real median family income rose 7 percent to $82,200, and real median household net worth increased by 2 percent to $215,900. However, economic gains remain uneven; while households led by individuals aged 75 and older saw income gains, those aged 35 to 44 experienced a 25 percent reduction in income.