Fed Survey Finds 1 in 5 Families Fell Behind on Payments. What to Do
The Fed's 2025 Survey of Consumer Finances shows rising wealth alongside rising payment strain. Here is how to read it and how to calculate your own ratio.
In this guide 9 sections
The Federal Reserve's 2025 Survey of Consumer Finances, released October 9, 2026, found that 19.6% of families were late on at least one loan payment in the prior year, up from 12.2% in 2022. The share of families spending over 40% of income on debt payments rose to 8.6%, the highest share in more than a decade.
The headline numbers look good. Median net worth rose 2% to $215,900 after inflation, and median family income rose 7% to $82,200. Underneath them, the survey shows more households stretched on monthly payments. This guide explains the findings, why rising wealth and rising strain can both be true, how to calculate your own payment-to-income ratio, and what to do if you are behind. It is written for anyone who carries a card balance, a car loan, or a buy now, pay later plan. Coinpurse covers credit and budgeting, and we prefer primary data over headlines. This is general information, not personal financial advice.
What is the Survey of Consumer Finances?
It is the Fed's triennial look at family balance sheets. The survey has run every three years since 1989, and NORC at the University of Chicago conducts it for the Fed Board. Participants were randomly selected from 119 geographic areas. The 2025 results compare with 2022 and are summarized in the Fed's report, Changes in U.S. Family Finances from 2022 to 2025.
The Fed's release gives the headline figures. Median net worth rose 2% to $215,900, while mean net worth rose 7% to $1.24 million. Median family income rose 7% to $82,200, while mean income fell 6% to $145,200. The homeownership rate was 66%. Stock market participation fell from 58% to 56%, and among families holding stock the median holding rose 36%, from $56,900 to $77,400. You can read the Federal Reserve's release on the 2025 survey.
How did family debt change?
Overall debt levels held steady. About 77% of families carry some type of debt, and median and mean debt were unchanged from 2022. Credit card use is the most common type of borrowing. In 2025, 44.7% of families reported a balance after their last payment, down slightly from 45.2% in 2022. Among those families, the median balance was $3,100, up 5%.
Other categories moved. Student debt fell to 20% of families, with a median balance of $25,600. Vehicle loans were held by 32.1% of families, with a median balance of $17,000. Other installment loans, which include personal loans, medical debt, and back taxes, rose to 24.2% of families, up 5.7 percentage points. The Fed says growth in buy now, pay later plans explains nearly all of that increase. Twelve percent of families reported a BNPL balance, up from 7% in 2022, with a median of $400 and a mean of $1,400.
Why are more families late on payments?
The Fed's report points to payment burdens, not total debt. The median debt payment-to-income ratio was 15.4%, up two percentage points from 2022. The Fed says that may relate to higher interest rates on mortgages and consumer loans. Between 2022 and 2025, the Fed says, the average 30-year mortgage rate rose from 4.2% to 6.7%, the average new vehicle loan rate rose from 4.9% to 7.7%, and the average credit card rate rose from 14.6% to 21.4%. The total debt-to-income ratio rose from 89.4% to 94.9%.
The share of families with payment-to-income ratios above 40% rose from 6.5% to 8.6%, a level the report ties to the 2013 survey, though another passage calls it the largest share since 2010. Families behind on loan payments rose from about 12% to almost 20%, and those 60 days late or more rose from about 5% to 8.2%. The Fed notes families were more likely to be behind than at any point since 2010. The details are in the Fed's full summary report.
Why can wealth rise while strain rises too?
Because assets and cash flow are different things. The Fed notes that borrowers look less fragile when debts are measured against assets. The median leverage ratio, total debt relative to total assets, was 26.9%, continuing a decline since 2013. Strong stock markets and higher house values lifted asset values. But a family cannot pay a car loan with the value of a home it plans to keep.
Payment strain tracks income and interest. Mean family income fell 6%, which suggests some families saw income drops even as the median rose. The Fed says these patterns suggest some families may be less able to service loans, despite growth in family assets. Cash cushions also look thin. Among families with transaction accounts, which include checking, savings, and money market accounts, the median balance fell 6% to $8,200.
How do you calculate your own payment-to-income ratio?
Add up your required monthly debt payments, then divide by your gross monthly income. Include mortgage or rent only if you want a housing-inclusive view, but be consistent. The SCF's measure covers debt payments relative to income, so use minimum required payments on cards and loans, not what you choose to pay.
- List each required payment: mortgage, car loans, student loans, card minimums, personal loans, and BNPL installments.
- Add them to a monthly total.
- Divide by your gross monthly income, before taxes.
- Multiply by 100 to get a percentage.
Take a worked example. A household earns $6,500 a month before taxes and pays $1,800 for a mortgage, $450 on a car loan, $200 on student loans, $90 in card minimums, and $60 across BNPL plans. The total is $2,600, and 2,600 divided by 6,500 is 40%. That household sits at the line the Fed uses to flag particularly high debt burdens. The median for debtors is 15.4%, so 40% is more than two and a half times higher.
What should you do if you are behind or close to it?
Act before a payment is missed. Lenders have more options when you call early. Credit unions and banks may offer hardship plans, lower payments for a limited time, or a new due date. Ask what is available, and write down what you are told.
- Rank your debts by consequence: secured loans, such as a car or home, first, then utilities and insurance, then unsecured debt.
- Call each lender with a specific request, such as a lower payment for three months.
- Pause new BNPL purchases. Small installments add up and are easy to forget.
- Build a one-month buffer in a checking or savings account before you make extra debt payments.
- Recheck your ratio each quarter.
If card interest is the problem, our explainer on why the average credit card APR differs by source helps you see how your rate compares. For a repayment plan, see our comparison of the debt snowball and debt avalanche methods. If a raise is not stretching as far as you expected, our guide on debt payments eating a raise walks through a budget fix.
Rates matter here because they set the size of every minimum payment. A card balance at 21.4% costs far more each month than the same balance at 14.6%, so the same debt takes a bigger bite of income. That is one reason the payment ratio rose while total debt stayed flat.
What does the BNPL growth mean for you?
BNPL splits a purchase into typically four to six equal installments, per the Fed's report. It is easy to use and easy to lose track of. Twelve percent of families had a balance in 2025. The median balance of $400 looks small, but several plans at once can add a surprising monthly total, and a missed payment may bring fees or a credit report entry.
With holiday shopping close, set a rule. Keep a list of every active plan and the date each installment is due. Count them in your payment-to-income ratio. Our piece on BNPL holiday shopping and late payments covers how missed installments can affect credit.
What should you keep in mind about the data?
The survey describes families in 2025, not today. It is also a snapshot, and conditional medians describe only families that hold that asset or debt. The $8,200 median transaction account balance, for example, covers families that have accounts. Your situation may differ, so use the numbers as a benchmark, not a verdict.
Still, the direction is clear. At Coinpurse, we read the survey as a reminder that a rising average can hide a tougher month-to-month reality for many households. Track your own numbers before you rely on the national ones.
Conclusion
The Fed's survey shows families with more assets and more strain at the same time. Late payments rose to 19.6%, high payment burdens reached 8.6% of families, and BNPL use climbed. Your own ratio matters more than any average.
This week, add up your required monthly payments and divide by your gross income. Write the result down, and check it again in three months. If it is rising, make a plan to lower it. If it is near 40%, call your lenders before the next due date.
