Fed: US household debt burden rises

Inflation-adjusted median family income rose by 7% to $82,200, while median net worth increased by 2% to $215,900. However, elevated inflation and borrowing costs continued to weigh on household finances.

According to the study, the share of families spending at least 40% of their income on debt payments climbed from 6.5% to 8.6%, reaching its highest level since 2013. Although income inequality declined slightly, significant disparities in wealth distribution persisted. The average wealth of the highest-income 10% of households reached 56 times that of the lowest-income 20%. The Fed's findings suggest that income growth alone has not been sufficient to strengthen household financial resilience.