More high-income Americans around the U.S. are falling behind on their credit cards and auto loans, a sign that even people earning more than six figures are more likely to struggle financially amid shifts in the economy.
Delinquencies across all loan products for households earning more than $150,000 have more than doubled since 2023. That compares with a 60% increase in delinquencies during that time for households earning between $45,000 and $150,000, and a 22% increase for people earning less than $45,000, according to data from credit-scoring company VantageScore.
High-income households had weathered the post-pandemic years better than lower-earning Americans because they had more of a cushion to absorb soaring inflation and other shocks, according to VantageScore chief economist Rikard Bandebo.
But these Americans are now feeling the impact of several economic changes, including a weaker job market for white-collar workers and higher housing costs, he told CBS MoneyWatch.
“For white-collar workers, it’s probably tougher than it has been,” Bandebo said. “This trend has been consistent and seems to be continuing — it’s not abetting.”
About 38% of all new jobs created in the five years before the pandemic paid above-average wages, VantageScore’s data shows. But this year that share has fallen to 7%, signaling that companies are creating fewer white-collar positions. That poses a challenge to higher-income Americans who suffer a job loss because it may be tougher to find new employment than in previous years.
“This group is being hit from a number of different aspects, which is making it harder for them to make ends meet,” Bandebo said.
To be sure, the overall rate of loan delinquencies in the U.S. remains higher for low- and middle-income consumers than for high-income earners, according to VantageScore. For instance, the delinquency rate for households earning at least $150,000 now stands at about 0.34%, versus 1.75% for low-income households. But the rise in delinquencies has accelerated faster for higher-income households than for other groups, the firm’s data shows.
A worrying sign?
A key question for the U.S. is whether the financial challenges facing high-income Americans could portend a broader economic downturn. Notably, consumption by wealthier Americans now contributes about half of all consumer spending, the main engine for economic growth. By comparison, in 1990 spending by Americans higher up the economic ladder accounted for about one-third of all spending.
At the same time, low- and middle-income households are also facing stiffer financial headwinds with about three-quarters of middle-income consumers saying they’re cutting back on non-essential purchases, according to a recent survey from financial services company Primerica.
About one-third of middle-income households, or those earning between $30,000 to $130,000, say they’ve increased their credit card usage in the past year, the survey found.
Retailers and major consumer brands have also been warning that some consumers are cutting back or are more cautious in their purchases.
Shoppers are “looking for value, either in smaller packs and promotions or in larger pack sizes in the club channel and online,” Procter & Gamble Chief Financial Officer Andre Schulten said on an earnings conference call Tuesday. “That’s the behavior we’ve been outlined before, but it’s not stopped. It continued.”
Widespread consumer frustration with high prices is thought to have boosted President Trump during the 2024 electoral campaign against Joe Biden, when Mr. Trump vowed to end the “inflation nightmare.” So far, inflation has remained relatively muted in 2025, although June’s 2.7% annualized rate remains higher than the Federal Reserve’s goal of reaching a 2% rate.
Yet more consumers are now expressing frustration with the Trump administration’s economic policies, according to a new CBS News poll that found nearly 64% of Americans now disapprove of how the president is handling inflation. The survey was conducted from July 16-18 and polled 2,343 adults.
As for Americans who are struggling to keep up with credit-card debt and auto loans, they aren’t likely to see relief anytime soon. Although Mr. Trump has been pushing Federal Reserve Chair Jerome Powell to lower interest rates, economists think the central bank is very likely to stand pat when officials announce their latest policy move on Wednesday.
Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.
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