U.S. Families' Debt Delinquency Reaches Levels Not Seen Since Great Recession
The Federal Reserve's Survey of Consumer Finances, released on Friday, revealed that the ability of U.S. families to meet their debt obligations has deteriorated significantly over the past three years, reaching levels not seen since the aftermath of the Great Recession in 2010. The portion of households behind on loan payments rose from about 12% in the previous survey to nearly 20%, a jump of more than two-thirds. While wealth disparities narrowed slightly and overall net worth increased, income inequality remained pronounced. Higher earners saw their median net worth rise by 31%, while lower-income families experienced declines or modest gains. The report also highlighted that debt-to-income ratios climbed to the highest level since 2013, with more than 8% of households behind on payments for two months or longer.
Topics: consumer debt Federal Reserve survey financial health wealth inequality