Americans are sinking deeper into debt — what's happening under Trump

The financial situation of American households is deteriorating: the share of families with overdue loans rose from 12% in 2022 to nearly 20% by the end of 2025. The proportion of households spending more than 40% of their income on debt servicing reached 8.6% — the highest since 2013. The Federal Reserve study covers the period 2022–2025, including part of Trump's second term.

The financial situation of American households is rapidly deteriorating, despite economic growth and promises from the Trump administration. According to a Federal Reserve study covering 2022–2025, the share of families with overdue loan payments rose from about 12% in 2022 to nearly 20% by the end of 2025 — a 67% increase in three years. The share of households with delinquencies of two months or more exceeded 8%, up from 5% in 2022. The delinquency rate is the highest since 2010. The proportion of families spending more than 40% of their income on debt servicing reached 8.6% — the highest since 2013. Median family wealth grew by only 2% (to $215,900), while average net assets rose by 7% (to $1.24 million), reflecting wealth concentration. Median wealth for the highest-income group grew by 31%, while for the bottom 25% by income it shrank by 6%. The study covers the Biden presidency and the first year of Trump's second term, so the data does not allow a direct link between the deterioration and the current administration's decisions alone.