What happened
Americans' debt levels have risen to near Great Recession levels, according to federal data. The share of families behind on loan payments increased from 12% to nearly 20% by the end of 2025. Additionally, those behind on bills by two months or more rose from 5% to over 8%.
Despite this, most families have seen their wealth increase, with inflation-adjusted average net worth jumping 7% to $1.24 million. However, wealth gains have been slower than in previous periods, and have increased at a faster pace for more affluent Americans.
Consumer spending has remained strong, with US household spending increasing 6.1% in the 12 months through August. However, consumers are also taking on more debt, with the median debt payment as a share of income rising 2 percentage points to 15.4%.
A concerning trend is that younger Americans, such as Gen Zers, are racking up interest on their credit cards. The total debt-to-income ratio has hit 94.9%, up from 89.4% in 2022, with 8.6% of families reporting debt payments worth more than 40% of their income.
