The Federal Reserve reported on Friday that the ability of American households to repay debts on time has deteriorated over the past three years, dropping to levels not seen since the global financial crisis.

In the "Consumer Finance Survey" released by the central bank, researchers found that although the wealth gap has narrowed, the ability to repay debts has significantly deteriorated.

The survey indicates: "The likelihood of families falling behind on their financial obligations is higher than at any time since the 2010 survey." This comprehensive report is published every three years to track the financial health of the United States.

In 2010, the United States was just emerging from what would later be known as the "Great Recession." That recession began in December 2007 and ended in June 2009. Following the collapse of the subprime mortgage market, the crisis spread to the largest financial institutions in the United States and around the world, pushing the unemployment rate as high as 10% at one point.

According to the latest findings, by the end of 2025, the proportion of families in arrears with loans has soared from about 12% in the previous survey to nearly 20%, an increase of approximately 67%. The proportion of families that are two months or longer in arrears has also increased significantly, rising from 5% in 2022 to over 8%.

Although this report covers up to 2025, Americans' concerns about their financial situation continue. A survey released earlier this week by the Federal Reserve of New York shows that households believe their financial condition is worse than it was a year ago and expect it to further deteriorate in the coming year.

The Federal Reserve's report on Friday also showed that the debt-to-income ratio had risen significantly. The proportion of households with payments exceeding 40% of their income increased to 8.6%, up from 6.5% in 2022, and reached the highest level since 2013.

At the same time, the net assets of high-income individuals have increased significantly, with the median net assets of households in the highest-income group growing by 31%.

During the period covered by this report, the economy continued to grow, but inflation levels reached highs not seen since the early 1980s.

In this environment, the Federal Reserve found that, after adjusting for inflation, the median household income increased by 7%, but the average income decreased by 6%.

The report states: "For families with lower incomes and net assets, both median and average incomes have increased slightly; however, for higher-income families, there has been a decline. These patterns indicate that income inequality has decreased slightly between the surveys."

The report indicates that income growth was particularly strong among households aged 75 and above, while the income of households aged 35 to 44 decreased significantly by 25%. The Federal Reserve attributes this to a decline in capital gains income within that age group.

The report states: 'Exceptions to the general pattern of overall rising median income were observed in non-Hispanic black families, Asian families, and families that typically have higher incomes and net assets. For these families, both median and average incomes declined.'

Overall, net assets have generally increased.

Inflation-adjusted, the average net worth increased by 7% to $1.24 million; the median net worth only increased by 2% to $215,900, reflecting a larger growth rate among high-income groups. The report indicates that the growth rate of net worth is “significantly slower” than that in the previous report, which covered the period from 2019 to 2022.

There are significant differences among different educational groups. The median income level of those with a university degree is 1.9 times that of those who have “attended some universities,” and their median net assets are nearly three times that of the latter group. The wealth of low-income families has “seen some decline,” while that of high-income families has increased. The median net assets of the lowest quarter of income families decreased by 6%, and the average net assets decreased by 4%.