Key Points

• U.S. loan delinquency rate soars to 19.6%
• The proportion of severe repayment delays has risen to 8.2% among borrowing families.
• Despite worsening consumer debt pressures, household wealth is still increasing.

According to the latest data from the Federal Reserve, nearly one-fifth of American families with debt reported being in arrears on their loan repayments, a proportion that has reached its highest level since 2010, while family wealth continues to rise.

The Federal Reserve's "Consumer Financial Survey" for 2025, released on October 9th, showed that 19.6% of borrowing households reported at least one overdue payment in the past 12 months, compared to 12.2% in 2022.

More serious defaults are also on the rise. The proportion of households with loans that are at least 60 days overdue has increased from 4.9% to 8.2%, indicating that borrowers in the United States are facing increasing pressure.

U.S. loan delinquency rate rises to 19.6%, debt burden increases

Although the proportion of American families holding debt has hardly changed, the situation is still worsening.

In 2025, approximately 77% of households will have outstanding debts, which is roughly the same as in 2022. However, the cost of repaying these debts has significantly increased.

In households with debt, the median proportion of debt repayments to income has risen from 13.4% to 15.4%.

At the same time, 8.6% of all households spend more than 40% of their income on debt repayment, which is higher than the 6.5% reported in the previous survey.

The Federal Reserve stated that this is the highest proportion since 2010.

These results indicate that, although the overall debt balance has not increased significantly, many borrowers are still struggling with their monthly repayment obligations.

Higher borrowing costs have exacerbated this pressure. The average credit card interest rate has risen from 14.6% in 2022 to 21.4% in 2025.

For lending institutions, an increase in the delinquency rate may mean higher credit losses, especially when borrowers are already carrying high-cost revolving credit balances.

The latest data also explains why credit card issuers must strike a balance between interest income and the risk of customers being unable to repay their balances.

Despite increasing financial pressures, household wealth in the United States is still on the rise.

One of the most striking findings of this survey is that while financial difficulties have worsened, typical American families have become wealthier.

After adjusting for inflation, the median net worth of households increased by 2% between 2022 and 2025, reaching $215,900.

The median household income grew even faster, rising by 7% to $82,200.

However, these improvements were not evenly distributed. The net assets of the bottom quarter of households in terms of wealth distribution declined significantly, while older and wealthier Americans generally benefited from rising asset prices.

In households where the head of the household is 75 years of age or older, the median wealth increased by 37%. In contrast, in households where the head of the household is under 35 years old, the median wealth decreased by 23%.

This comparison highlights the important distinction between financial wealth and disposable cash.

A family may hold stocks or real estate that have appreciated in value, but still does not have sufficient monthly income to cover mortgage payments, credit card debts, and other expenses.

The Federal Reserve pointed out that wealth locked up in assets with poor liquidity may not be available immediately for debt repayment.

What does the rise in loan delinquency rates in the United States mean for the economy?

These results have raised questions about the sustainability of consumer spending among the public. Consumer spending accounts for about two-thirds of U.S. economic activity.

When families use more of their income to pay off debts, their flexibility in making non-essential purchases decreases.

This may ultimately affect retailers, lending institutions, and businesses that rely on consumer demand.

However, this survey does not prove that a nationwide credit crisis is occurring in the United States. It measures the reporting experiences of households over the previous 12 months, rather than the real-time delinquency rates as of October 2026.

The Federal Reserve also found that the proportion of families filing for bankruptcy over the past five years has remained relatively stable at 1.4%.