According to the Federal Reserve’s Survey of Consumer Finances, American families’ median net worth increased just 2% from 2022 to 2025, reaching $215,900. Families with less wealth at the outset saw declines, while wealthier families recorded larger gains, reinforcing existing wealth disparities. Richer households saw most of the wealth growth, while many lower-income families struggled financially and faced mounting credit card debt. Wealthy households also benefited from sizable gains in equity values.
Key Takeaways:
- The Federal Reserve’s Survey of Consumer Finances shows median net worth for American families rose only 2% from 2022 to 2025, reaching $215,900.
- Median household income increased 7% over the same period, reaching $82,200.
- From 2022 to 2025, the median net worth of the bottom fourth of households fell from $3,800 to $1,700, a decline of more than 50%.
- Median net worth among the wealthiest 10% of families increased about 19%, from $4.15 million to $4.94 million.
- Between 2022 and 2025, the share of families with overdue loan payments rose from 12% to 20%, while the share at least two months behind increased from 5% to more than 8%.
Americans face difficulty making debt payments.
From 2022 to 2025, the share of American families in debt remained about the same at 77%, but fewer were able to make payments on time. Families were more likely to be struggling financially than at any other point since 2010, the Fed said. From 2022 to 2025, the portion of families that reported being behind on loan payments increased from 12% to 20%, and more than 8% said they were two or more months behind, up from 5% three years prior.
While each consumer’s financial situation is different, there are ways to determine if you are carrying too much credit card debt.
Consider your answers to the following questions:
- Is credit card debt affecting your financial and emotional well-being? High credit card balances can lower your credit score and create financial strain and emotional stress. As a general guideline, keep your monthly credit card payments at or below 10 percent of your monthly income.
- Are you paying only the minimum? Credit cards typically have low monthly minimum payments, but that doesn’t mean they are affordable just because you can cover that amount. If you are only able to make the minimum payment, that can be a sign you have too much credit card debt.
- Is your credit card debt impacting your credit score? Credit cards can help your credit score- or hurt it, depending on how you use them. It is recommended that you keep your credit utilization below 30 percent. Having significant credit card debt can have a negative impact on your credit score. This can make other debts, like your mortgage and car payments more expensive.
As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges.
Bankruptcy can offer relief to people overwhelmed by credit card debt. Chapter 7 is the quickest form of consumer bankruptcy and eliminates most unsecured debts, including credit card balances, medical bills, and personal loans. To qualify, consumers must meet requirements related to income, assets, and expenses, assessed through the bankruptcy means test.
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If you have questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can assist you and address all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild, and recover. The day you hire our firm; we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.