LivewireOct 16, 2026 · 14:08 ET

Debt is eating up a bigger chunk of your raise, research shows

Debt payments are rising faster than take-home pay, and a growing share of families is devoting more than 40% of income to debt service.

✓Source-backed summarySource: CNBC

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THE VERIFIED BREAKDOWN

A new analysis says a typical U.S. household's estimated real take-home monthly pay rose $109 from late 2022 to early 2026, while a worker's monthly debt payments rose $57.
Researchers estimate 52 cents of every dollar of income gained goes to higher debt payments for a one-earner household; for a two-earner household, they project the entire real income gain, and then some, goes toward debt.
Federal Reserve data show 8.6% of families spent more than 40% of their income on debt payments in 2025, up from 6.5% in 2022, the highest level since 2013.

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