The Fact
Federal Reserve Financial Accounts data show that household debt equaled about 67% of disposable personal income at the end of 1980 and about 90% at the end of 2025.
What This Means
Households now carry substantially more debt relative to the income available after taxes than they did near the beginning of the Gen X childhood era. Debt can expand purchasing capacity, but it also commits future income to payments and changes how much financial shock a household can absorb.
Sources
- Federal Reserve Board, Financial Accounts of the United States, Z.1, ratio of household debt to disposable personal income.