Squeezed by inflation, more Americans are falling behind on their debts
Summary
Rising prices in the U.S. are making it harder for many people to pay their debts. More Americans are behind on loans like car loans, credit cards, mortgages, and student loans.Key Facts
- The share of seriously late car loan payments is at a record high in 2025.
- About 13% of credit card balances are seriously overdue, near the highest level since 2010.
- Mortgage delinquencies have reached a six-year high but remain below Great Recession peaks.
- Student loan late payments increased after pandemic protections ended and repayment plans changed.
- Nearly 9% of households spent over 40% of their income on paying debts in 2025, the highest since 2010.
- Almost 20% of households were late on at least one debt payment in 2025, up from 12% in 2022.
- Seniors over 70 saw the highest levels of late car and credit card payments in years.
- More than half of Americans used credit cards to pay for basic needs, with many carrying bigger balances due to inflation.
- Wage growth has not kept up with inflation, reducing people's buying power and increasing debt struggles.
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