American families are behind on their bills at a rate not seen since the Great Recession of 2008

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American families are falling behind on paying their bills at a rate not seen since the Great Recession, new federal data shows.

One in five households are behind on their loan repayments, the Federal Reserve reported in its three-year survey of 4,367 American families.

“Between the 2022 and 2025 surveys, the proportion of families reporting being behind on their loan payments increased sharply, from around 12% to almost 20%,” the report said.

Median debt per household — which includes credit cards, student loans, mortgages and other types of loans — increased from $170,200 in 2022 to $183,600 in 2025, the report notes.

The number of families at least two months behind on a bill has increased 60 percent over the past three years, according to the report.

The last time Americans were this behind on their bills was during the Great Recession of 2008, when the unemployment rate was double what it is today.

One explanation for the increase in late payments is that consumers took out loans before 2026 — and did not expect such large increases in prices for gasoline, groceries and other essentials.

“In planning their loans, families make assumptions about their future ability to repay their loans,” the report said.

“Problems can arise when events prove contrary to these assumptions. If economic shocks are large and widespread enough, a broad pattern of defaults, spending restraints and financial distress could result in the economy as a whole.”

Other factors have pushed consumers to take on debt to get through tough times.

Americans’ cost of living has increased 39% since September 2016. Median household income has increased 13% during the same period, according to federal data.

As consumers’ earning power has fallen below inflation, many have faced a new reality of living paycheck to paycheck, including those earning six figures.

According to a recent Goldman Sachs report, about 35 percent of those earning more than $300,000 live paycheck to paycheck, about the same rate as those earning between $50,000 and $100,000.

These factors have contributed to a widespread sense of financial unease among the average consumer. About 40 percent of households do not have “full confidence in their ability to afford essential goods such as food, utilities, housing and transportation,” according to a September study from the Financial Health Network.

This concern extends to the vision that Americans have of the economy. Consumer confidence in the future of the economy fell to a 12-year low in September, according to a recent monthly report from business intelligence firm Conference Board.