Fed: Share of Families Spending Over 40% of Income on Debt Payments Hits 8.6%, Highest Since 2013
Rising household leverage and falling stock participation signal both vulnerability and concentration in US family finances.
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The Federal Reserve released the 2025 Survey of Consumer Finances, showing that the share of families with debt payment-to-income ratios exceeding 40% rose to 8.6%, the highest level since the 2013 survey.
Conducted every three years by NORC at the University of Chicago, the survey covers income, net worth, debt, and financial vulnerability. The 6.5% figure in 2022 has now climbed to 8.6%, meaning more families are spending close to their income ceiling on monthly debt obligations.
Stock market participation dipped from 58% to 56%, yet median holdings among stock-owning families grew 36% from $56,900 to $77,400. Real median family income rose 7% to $82,200, while real mean income fell 6% to $145,200, indicating income compression at the top.
The data reflect the 2025 survey period and do not capture subsequent market movements.