CHRONIC DEBT
Chronic debt, defined as non-collateralized debt exceeding 20% of annual income, reveals key insights into economic challenges faced by Americans. According to our data, chronic debt generally decreases with age. However, when broken down by race, Black and Hispanic populations show consistently high rates of chronic debt across all ages, reflecting enduring financial disparities.
From 2004 to 2022, chronic debt rates increased across all age groups. The most notable rises occurred among the lowest income group, women aged 65 and older, and unmarried individuals. Interestingly, although the highest income group is the only one in which chronic debt rates declined (among some age groups), chronic debt remains relatively common even in this income bracket.
These findings highlight the widespread and systemic nature of chronic debt, emphasizing the need for strategies to alleviate financial hardships among the most affected populations.
EXPLORE THE DATA
Definition:
Percent of individuals living in families with debts exceeding 20% of their annual income, excluding mortgages, car loans and other forms of collateralized debt.
Example:
A person with an annual income of $100,000 with a medical debt of $10,000, a credit card debt of $5,000, and a business loan of $7,000 is considered as having chronic debt. A person with $100,000 income with a medical debt of $10,000 and a car-loan debt of $15,000 is not considered as having chronic debt.