Debt struggles hit consumers at all income levels — here’s why
Since the credit card debt is higher, there are more signs that consumers – even higher income ones – struggle to manage their balances.
According to the New York Federal Reserve Bank, the credit card debt reached $ 1.21 trillion in line with the highest level of last year in the second quarter. The total increased by 2.3% compared to the previous quarter.
Although low -income Americans are likely to fight with higher costs of daily items, a new series of polls from the National Credit Consultancy Foundation found that debt problems have affected an increasing number of Americans at all income levels in the last six months.
“It doesn’t really matter at the income level,” Mike Croxson, CEO of NFCC CEO, a non -profit -free credit consultancy organizations. He said. “This is really about the debt level. Because when you reach the top of the overturning point, since it exceeds what you can pay for interest expenses, this is what makes the consumer a problem.”
2,010 US adult NFCC Survey of 18 years and over by Harris Survey Released in Aprilthen updated then A follow -up survey From 2,089 people at the beginning of August.
‘Negative debt behaviors’ cross income levels
Poultry animals are exhibited in a store in New York, New York, July 15, 2025.
Jeenah Moon | Reuters
There are a few signs Consumers’ debt struggles are getting worse.
Although the percentages are relatively small, the latest NFCC questionnaire shows that individuals who pay credit card payments in the last six months rose to 13% in August up to 8% in spring in spring.
There was a small increase in those who transfer debt from one card to another. It doubled a personal loan of the borrowers who combine the credit card debt, from 4% in the April survey to 8% in the August survey.
In the Harris survey, Kathy Steinberg, a E -Posta, was generally the same as the share of those who participated in some of these “negative debt behaviors” in the last six months, from those who earn less than $ 50,000 to those with an annual income of over $ 100,000.
“Those in high -winning households are less likely to worry about various aspects of their financial situation compared to six months ago.” Steinberg said. However, “they are worried,” he said.
Six months ago, 30% of high -income consumers in the August survey are more concerned about having sufficient money to cover unexpected expenses, and 20% of them are more concerned about making time debt payments.
Other Debt Saus Symptoms
Other data show that borrowers are increasingly behind their payments, including those who are more than 90 days late. The Credigescore’s July Creditgauge report of the credit scoring company shows that late stage loan violations have increased in all credit layers, including the most loan debtors, compared to last year.
“There are a few things that guide this,” Virtagescore CEO Silvio Tavares said. He said. “We see the bad employment environment and this in late payments. But the real, another tendency, inflation and high interest rates that have been going on for a while. These are the other key driving forces of this change.”
Meanwhile, Federal Reserve Senior Credit Officer Opinion Survey As of July, lenders tighten the standards on credit card loans in the last few months.
Tavares said that increasing default and economic uncertainty affect the decisions of lenders.
In addition, the consumer mortgage and car loans demand has fallen in recent months, he said.
“Consumers receiving mortgage loans and automobile loans tend to be richer. Obviously, we see that they really withdraw their demands and their demands for them.” He said.
Authorized, payments can not be reached even for higher income consumers, he said.
According to a new Experian report, approximately 15% of those who buy or renters a new vehicle have a payment of more than $ 1,000 per month. The average monthly payment for a new automatic loan is $ 749.
Being a member: Money 101 It is a 8 -week learning course on financial freedom delivered to your incoming box weekly. Be a member Here. Also available Spanish.
