A recent report from the Century Foundation and Protect Borrowers reveals that debt payments have risen 14.8 percent since late 2022, while real income growth has been just 1.7 percent, meaning debt burdens have expanded eight times faster than take-home pay. Consumer debt now consumes roughly 10 percent of after-tax household income, up from 8.9 percent at the end of 2022, with credit cards and auto loans accounting for 44 percent and 40 percent of monthly obligations respectively. For a single earner, real monthly take-home pay increased by an average of $109, while required debt payments rose by $57, absorbing more than half of each wage gain before it could be used for savings or essentials. In dual-earner households, combined debt payments grew by $114, surpassing the household’s total income increase of $109, effectively erasing net gains. Julie Margetta Morgan, president of the Century Foundation, described the situation as families navigating a precarious 'Jenga' of debt while broader economic indicators remain positive. The analysis highlights that conventional measures of wage growth often overlook the significant drag imposed by debt service. To address this, the organizations propose a new metric called Real Income Net of Debt (RIND) to better reflect household financial strain. The report also notes that affordability concerns are influencing voter priorities ahead of the upcoming midterm elections. Disparities in debt burden are evident across racial lines, with Black workers spending 13.6 percent of take-home income on consumer debt compared to 8.4 percent for White workers. Additionally, rising auto loan payments, with 21.2 percent of new-car buyers taking $1,000-plus monthly loans in late 2026, further strain household budgets. The findings underscore how debt taken for basic necessities disproportionately affects working-class families, particularly as interest rates on credit cards and loans remain elevated. The report emphasizes that the current affordability crisis reflects structural financial pressures rather than individual fiscal mismanagement, as many households are compelled to borrow to cover essentials like food and healthcare when safety net programs contract.