Federal Reserve Report: U.S. Household Debt Servicing Capacity Deteriorates to Worst Level Since Great Recession
The Federal Reserve's Survey of Consumer Finances, released on Friday, revealed a continued deterioration in the debt-servicing capacity of U.S. households over the past three years. The proportion of households delinquent on loan payments surged from approximately 12% to nearly 20%, while those delinquent for two months or more also rose from 5% to 8%. This level has not been seen since the Great Recession in 2010. The report noted that the percentage of households with a debt-to-income ratio exceeding 40% increased to 8.6%, marking a new high since 2013.
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