Share of Loans (Liabilities) Held by the Bottom 50% (1st to 50th Wealth Percentiles)

WFRBSB50209 • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

30.90

Year-over-Year Change

-2.22%

Date Range

7/1/1989 - 1/1/2025

Summary

This economic trend measures the share of total household debt held by the bottom 50% of the U.S. population in terms of wealth. It provides insight into the financial burdens and borrowing patterns of lower-income households.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The Share of Loans (Liabilities) Held by the Bottom 50% represents the percentage of total household debt obligations owed by individuals in the 1st to 50th wealth percentiles. This metric is used by economists and policymakers to analyze the distribution of debt and credit access across the population.

Methodology

The data is calculated by the Federal Reserve using survey responses and administrative records on household wealth and liabilities.

Historical Context

This trend is relevant for understanding the dynamics of consumer credit markets and evaluating the financial health of lower-income Americans.

Key Facts

  • The bottom 50% of U.S. households held 12.5% of total household debt in 2019.
  • Debt held by the bottom 50% has increased from 8.4% in 1989 to 12.5% in 2019.
  • Lower-income households have taken on a growing share of the nation's debt burden.

FAQs

Q: What does this economic trend measure?

A: This trend measures the share or percentage of total household debt obligations held by the bottom 50% of the U.S. population in terms of wealth and net worth.

Q: Why is this trend relevant for users or analysts?

A: This metric provides insight into the debt burdens and credit access of lower-income households, which is important for understanding consumer finance dynamics and evaluating financial inclusion.

Q: How is this data collected or calculated?

A: The Federal Reserve calculates this statistic using survey data on household wealth and liabilities.

Q: How is this trend used in economic policy?

A: Policymakers and analysts use this trend to assess the distribution of debt and credit access across the population, which informs decisions around consumer protection, financial regulation, and social policies.

Q: Are there update delays or limitations?

A: The data is published annually with a lag, so there may be delays in accessing the most recent figures. The survey-based methodology also has some limitations in fully capturing all household liabilities.

Related Trends

Citation

U.S. Federal Reserve, Share of Loans (Liabilities) Held by the Bottom 50% (1st to 50th Wealth Percentiles) (WFRBSB50209), retrieved from FRED.