American Families Face Highest Debt Payment Burden in 13 Years, Federal Reserve Survey Reveals
A recent Federal Reserve's 2025 Survey of Consumer Finances indicates that 8.6% of American families are now spending over 40% of their income on debt payments. This figure represents a significant increase from 6.5% in 2022 and marks the highest level recorded since the 2013 survey. Despite the share of families holding debt remaining stable at approximately 77% between 2022 and 2025, and median debt among borrowers barely shifting at $88,100, the cost of servicing this debt has risen substantially. The average 30-year mortgage rate increased from 4.2% to 6.7%, credit card rates climbed from 14.6% to 21.4%, and new-vehicle loan rates went from 4.9% to 7.7% during the survey period. These higher borrowing costs mean that even with similar debt amounts, monthly payments have become a larger portion of household budgets for a growing number of families. Real median family income did rise by 7% to $82,200, and median net worth increased to $215,900, but these gains were insufficient to offset the impact of in...
