5 Reasons $150K+ Earners Are Struggling With Debt
Written by
Emily Fowler
Edited by
Angela Corry
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Inflation, rising interest rates and job market uncertainty are putting pressure on more than just low-income households. According to CNBC, a recent VantageScore report shared that high earners — those making $150K or more — are seeing a rise in delinquency rates for credit cards, auto loans and mortgages.
In fact, the delinquency rate among these borrowers has surged 130% over the last two years, reaching a five-year high. Here’s why high earners are struggling with debt.
Soaring Insurance Costs
Home and auto insurance rates are rising sharply, hitting high-income earners particularly hard. According to Insurify, car insurance rates have shot up 42% since 202, and the U.S. Department of the Treasury’s Federal Insurance Office (FIO) reports that homeowners insurance is getting more expensive and harder to secure as climate disasters drive up costs. Higher earners with more expensive properties or multiple vehicles will naturally feel the brunt of these increases.
Mortgage Pressure
Owning a home has become more expensive than ever. Rising property taxes, maintenance costs and higher mortgage rates are making it harder for even high-income professionals to stay on top of payments. Those who bought homes during periods of low interest rates are now seeing their monthly payments climb, particularly if they’re refinancing or buying a new home today.
Stock Market Uncertainty
High earners tend to have greater exposure to the stock market, and recent volatility, particularly with current doubt around the U.S. economy, has made many cautious about their financial outlook. Despite strong stock market gains in recent years, the future of the market remains uncertain.
Student Loan Program Disruption
Federal student loan programs are looking like they’ll be disrupted by President Trump’s plan to dismantle the Department of Education, making repayment harder for high earners with significant debt. The potential transfer of the federal student loan portfolio to the Small Business Administration, as announced this week, could mean higher interest rates, fewer protections and more financial strain for those already struggling with rising costs.
Credit Caution Isn’t Enough
While many high earners are exercising restraint with credit, the reality of rising costs means that caution isn’t always enough. Credit utilization and amounts among these households have dropped, per VantageScore, with an average $204.1k balance in January 2025 compared to $226.7k in January 2024. The fact that many high earners opt not to use the potentially significant credit they have access to highlights the issues people of all income brackets face.
What’s Next?
Even high-income earners aren’t immune to financial issues. Rising costs, coupled with economic uncertainty, are testing the limits of many people’s financial stability. If this trend continues, even those earning six figures may struggle to stay ahead.
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