Federal Reserve Bank of New York Reports Financial Distress at Post-Great Recession High Water Mark

November 6, 2025 | WASHINGTON, D.C. — Yesterday, economists at the Federal Reserve Bank of New York released new data showing that families are falling behind on a range of financial products, including credit card debt, student debt, and car loan debt. This quarterly snapshot of families’ debt burdens and delinquencies shows that the level of distress in late 2025 exceeds the level of families’ financial distress at any point since the aftermath of the Great Recession a decade ago.

In response to this new data, Protect Borrowers Deputy Executive Director and Managing Counsel Persis Yu released the following statement:

“American families are in crisis. Despite promises by then-candidate Trump to lower the cost of living for everyday Americans—families are increasingly relying on debt to afford basic necessities. Choices, like the Trump Administration’s decision to restart seizing payments from defaulted student loan borrowers and resuming interest, despite the unprecedented distress in the federal student loan market, to putting past-medical debt on credit reports, and to jack up credit card late fees are driving this unaffordability crisis. While families are drowning in debt as they face increasing grocery and healthcare costs, big corporations are raking in huge profits.

“The effects of this crisis are being felt across the economy. Over the last week alone, big restaurant chains like Chipotle and Cava have cited growing student loan debt as a major factor behind lower sales and a worsening business outlook. The alarm bells are starting to ring and it’s time for policymakers to stand up to corporate interests and make good on their promises to American families.”

###

About Protect Borrowers

Protect Borrowers (formerly Student Borrower Protection Center) is a nonprofit organization led by a team of experts, lawyers, and advocates fighting to build an economy where debt doesn’t limit opportunity. We investigate financial abuses, take predatory companies to court, and push for policies to protect working people from debt traps. We aim to deliver immediate relief to families while building power, driving systemic change, and fighting for racial and economic justice.

Learn more at protectborrowers.org or follow us on social @BorrowerJustice.