Median family income rose 7% in real terms between 2022 and 2025, to $82,200, according to the Federal Reserve’s latest Survey of Consumer Finances, released in October 2026.
Over the same three years, the share of families at least two months behind on a payment rose from 4.9% to 8.2%.
The broader count climbed even more. In 2025, 19.6% of families reported being late on payments, up from 12.2% in 2022. The Fed said families’ ability to stay current on their obligations “worsened sharply” over that stretch.
The 40% line the Fed tracks
The survey also measures how much of each family’s pretax income goes to debt payments, including mortgages, car loans, student loans and credit cards.
In 2025, 8.6% of families spent more than 40% of their income on debt payments, up from 6.5% in 2022 and the largest share since 2010.
The typical family with debt put 15.4% of its income toward payments, up from 13.4%.
For a household earning the median $82,200, the 40% line works out to $2,740 a month in debt payments, before groceries, utilities or other bills.
Run the test on your own budget
Add every required monthly debt payment: mortgage or home equity loan, car loans, student loans, personal loans and the minimum due on each credit card. Divide the total by your monthly pretax income.
The Fed doesn’t include rent in its calculation, though it competes for the same dollars. A result near the 15.4% median leaves far more room than one approaching 40%, where a single surprise expense can push a payment past due.
Tracking every dollar you spend for a month shows how much room you have left after payments go out.
When card interest is the problem
In 2025, 44.7% of families carried a credit card balance after their last payment, and the median family with card debt owed $3,100. Interest is what keeps those balances from shrinking.
Moving a balance to a card with a 0% introductory rate can pause that interest for a set period. Transfers usually carry a one-time fee, and any remaining balance after the promotion ends is charged at the card’s regular rate, so the payoff plan matters as much as the card.
Stop letting high-interest credit card payments bog you down. It seriously limits your spending power. If your monthly interest payments are starting to creep out of control, you may want to switch to a card with a 0% intro APR.
FinanceBuzz editors have done their research and identified some of the best options to help you take back control. These cards offer a generous 0% intro APR on purchases and balance transfers into nearly 2028, giving you the breathing room to tackle your debt or make a new purchase without being hamstrung by high interest.
Plus, you can earn up to 5% cash back on everyday purchases and enjoy a $0 annual fee. It’s a no-brainer when you consider you could save on interest and earn rewards on everyday purchases.
Get rid of your high-interest payments. Learn more about these cards today.
When the payments no longer fit
If your total sits near or above 40%, a new card may not be enough. Nonprofit credit counseling agencies offer free or low-cost advice. They can set up a debt management plan, where you make one monthly payment to the agency, and it pays each creditor, which can lower interest and fees. The National Foundation for Credit Counseling connects callers with member agencies.
Whichever route you take, compare the total cost before you commit. Debt settlement can affect your credit and your tax bill, so those tradeoffs belong in the math.
For larger balances, debt relief is another option. If you have $15,000 or more in unsecured debt, National Debt Relief is one of the most established debt-relief providers in the U.S. It has helped over 1.3 million people, holds an A+ BBB rating and is top-rated by ConsumerAffairs, Top Consumer Reviews and others.
You fill out a quick form, and a certified debt specialist reviews your situation. If the company can help, it builds an affordable plan and estimates when you could be debt-free. There is no upfront fee and no obligation to get started, and it can help with most unsecured debt, including credit cards, personal loans, medical bills and even some student loan debt.
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