1 in 5 US Households Fall Behind on Loans as Median Debt Hits $183,600
Updated
Updated · The Independent · Oct 13
1 in 5 US Households Fall Behind on Loans as Median Debt Hits $183,600
3 articles · Updated · The Independent · Oct 13
Summary
Nearly 20% of U.S. families were behind on a loan payment in 2025, up from about 12% in 2022 and back to Great Recession-era levels, according to the Federal Reserve’s survey of 4,367 households.
Median household debt rose to $183,600 from $170,200 over the same period, while families at least two months late on a bill increased 60%.
The Fed linked the deterioration to borrowing plans upended by higher costs for gas, groceries and other essentials, with living costs up 39% since 2016 versus a 13% rise in median household income.
That squeeze has widened financial strain beyond lower earners: 40% of households are not fully confident they can afford essentials, and consumer confidence in the economy’s future fell to a 12-year low in September.