And politicians say "what?"
Posted on 10/09/2026 10:18:22 AM PDT by Miami Rebel
The ability of U.S. families to stay current on their debts worsened over the past three years, hitting levels not seen since the aftermath of the global financial crisis, the Federal Reserve reported Friday. In the central bank’s Survey of Consumer Finances, researchers found that while wealth disparities narrowed somewhat, the ability to meet debt payments deteriorated significantly.
“Families were more likely to be behind on their financial obligations than at any point since the 2010 survey,” stated the survey, a data-rich document the Fed releases every three years to chronicle the nation’s financial health. The country in 2010 was just emerging from what became known as the Great Recession, a period that ran from December 2007 to June 2009. A collapse in the subprime mortgage market resulted in contagion across the largest financial institutions in the U.S. and the world, sending unemployment at one point to 10%.
According to the new findings, the portion of families behind on loan payments at the end of 2025 soared from about 12% in the prior survey to nearly 20%, a gain of some 67%. Those behind by two months or more also accelerated considerably, moving to more than 8% from 5% in 2022. While the report covered the period through 2025, Americans’ concerns over their finances have persisted. A New York Fed survey released earlier this week showed that households reported their financial situations had worsened from a year ago and were likely to be weaker in the year ahead.
Friday’s Fed report showed the share of debt to income also posted a large gain. Families with payment-to-income ratios of greater than 40% jumped to 8.6%, up from 6.5% in 2022 and the highest level since 2013. At the same time, the net worth of higher earners soared, with those in the top income group seeing their median net worth rise 31%. The report covers a period where the economy continued to grow but with inflation rates not seen since the early 1980s.
Amid that climate, the Fed found that real median, or midpoint, family income increased 7% but average income dropped 6%. “Families in the lower ends of the income and net worth distributions saw modest increases in median and mean income, while families in the upper ends saw declines,” the report stated. “These patterns indicate that income inequality decreased slightly between surveys.”
The report noted that income gains were particularly strong with families aged 75 or older while tumbling 25% for those aged 35 to 44, which the Fed attributed to declines in capital gains income for that group. “The exceptions to the general pattern of a rise in median income were for Black non-Hispanic families, Asian families, and families toward the top of the usual income and net worth distributions,” the report stated. “For these families, both median and mean income fell.”
Overall, net worth generally increased. Inflation-adjusted average net worth rose 7% to $1.24 million, though median net worth climbed just 2% to $215,900, reflecting gains among those at the higher end. The report noted that net worth was “much slower” than the prior report that covered the 2019-22 period.
There were considerable disparities among education groups. Those with a college degree had 1.9 times the median income level than those with “some college” and nearly three times the median net worth. Lower-income families “saw some declines” in wealth while those with higher incomes saw gains. Families in the bottom one-fourth of income median net worth declined 6% while average net worth fell 4%.
And politicians say "what?"
Well, there is credit card debt which could be for many things, & the fact that a 50 yr. old could be out of debt (barely) but would be back in debt if he was to write a $5000 check.
Politicians apparently think that if you got even a very small raise or have ANY money in the bank that you are in good shape. Actually, the only raises I got in my entire working life were rare, small, & some so small that they could not rightly or fairly even be called a raise. Been on SS for several years now & those were actually probably the best raises I ever got.
Prime rate 21.5% in December 1980.
Prime rate now 7%
Inflation rate 13.3% in 1979.
Inflation rate now 3.4%
Unemployment rate 7.2% in 1980.
Unemployment rate now 4.2%
I see "help wanted" signs all the time, where I live.
I see panhandlers outside WalMart, and there are help wanted signs right on the door, a hundred yards away.
There could be reason not to buy any new vehicle when the advertised price is probably at least 2-3 times what it might actually be worth. If a person had to have one for their business, then at least some of it could probably be written off as a business expense.
I see panhandlers outside WalMart, and there are help wanted signs right on the door, a hundred yards away.
A lot of those “panhandlers” just want money for drugs and booze.
Does anyone have figures on auto techs pay versus what the shop charges in the case of a commissioned or fixed pay tech?
It is a blatant lie that the economy is roaring.
if it is roaring, it’s for the top 15%, maybe top 10%.
Every single small business owner I have spoken to has pretty much told me Year after year their revenues have dropped since 2024.
Does anyone have figures on auto techs pay versus what the shop charges in the case of a commissioned or fixed pay tech?
Does anyone have figures on auto techs pay versus what the shop charges in the case of a commissioned or fixed pay tech?
ok noob...
i can access 1 million dollars right now if i wish, but I think i’m in the minority.
after bumping into a daily limit on my only debit card at the microcenter trying to buy a NVIDIA video card and some RAMs, i decided to open two new ira accounts with SoFi and WeBull and acquire more debits cards
now, what’s interesting is, my dollars goes very far in japan, i can buy a rolex at 1/2 american dollars with Japanese yen in Japan.
I see help wanted signs all over. Inflation hasn’t been a problem. Jobless claims are down. The economy keeps expanding quarterly. The businesses I work with here in Redmond OR (retail and construction) are having a great year.
It's someone who lives near a slovack.
Seriously, one of the cultural surprises of moving to north TX was the number of people who still pay by check. Moreover, the church I attend has no means of online donation; people put checks in the offering plate.
But back to the issue at hand.
Is there any reason to be in debt outside of a mortgage?
Most of the time, no. When we moved to TX earlier this year, 30yo daughter needed a crossover/SUV to combine use at work as transporting to various IT networking sites, and carrying the impending newborn who is now 2mo. She decided on a recently-new 2024 Rav4, and had about half the cost of the car, so she took a 4yr auto loan for the rest, which fit her budget. I could have given her the other half, but this is good discipline for her and SIL, and since they intend to keep the Rav for much longer than the time of the loan, it is more of an investment than just a purchase. (Also, she is paying ahead on the principal, because she doesn't like being in debt.)
Welcome to Free Republic, where everyone is a humble bragging investment genius, planning professional, and Titan of Industry
Oh, my stocks and mutual funds have gone up dramatically the last two years.
The communist propaganda machine keeps on cranking...
The average is largely swayed by the very rich, and doesn't describe the "average American". Median is just $216,000, less than 1/5 of average. And that includes home equity. Take away home equity and median net worth drops under $100K.
I’d considered making an offer on a foreclosure in 2010 but decided not to. Maybe later.
“Families were more likely to be behind on their financial obligations”
Sounds like their government is representative of its citizens.
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