Data through: Q2 2026 · updated Sep 23 · Updates: Quarterly (released ~12 weeks after quarter end)
↓ 0.0 pp YoY
Historical context: Currently in the 21st percentile — near historically low/favorable levels.
What this means right now: Debt payments are taking a moderate share of household income, in line with the usual range.
Debt Service Ratio · Quarterly · 2005–2026
NBER recessions
Scroll to read · zoom and pan in Expand
Monthly values
Debt Service Ratio — the last 8 quarters
Every quarter's reading, with the band the heatmap gives it. The chart above shows the same series in full.
Quarter
Value
Band
Q2 2026
11.11%
Within normal range
Q1 2026
11.16%
Within normal range
Q4 2025
11.32%
Within normal range
Q3 2025
11.23%
Within normal range
Q2 2025
11.12%
Within normal range
Q1 2025
11.11%
Within normal range
Quarter-end readings of the same series as the chart. Values are the current record, not point-in-time: a month that has since been revised shows its revised value.
What is the Debt Service?
The debt service ratio (DSR) is the share of household after-tax income that goes to required debt payments — mortgage principal and interest, car loans, student loans and credit-card minimums. The more of each paycheck that debt claims, the less is left to spend. When the burden gets too heavy, households pay debt down and spend less until it eases: after peaking at 15.85% in Q4 2007, the ratio fell to 11.49% by Q2 2015. Note: the Fed's current version of this series begins in 2005, after a change of method. Earlier figures sit about 2pp apart and cannot be joined on, so the site deliberately shows nothing before 2005.
How We Color-Code the Debt Service
Our heatmap colors this indicator against historically significant thresholds:
Below 9.00%
Very light debt burden — below 9%, lower than anything since 2005; the low was 9.05% in Q1 2021.
Heavy debt burden — debt payments squeezing what households have left to spend.
14.00% or above
Very heavy debt burden — 14% or above, where the series spent its first 22 quarters, 2005 to mid-2010, including the 2008–09 recession.
Historical Extremes — What Happened Next?
When this indicator reaches extreme levels, history shows consistent patterns:
Q4 2007Pre-GFC Peak
15.85%
The highest reading since the series began in 2005, in Q4 2007. Households were carrying more debt than they could handle, and the crisis followed.
Q1 2021Post-GFC Low
9.05%
Stimulus checks lifted incomes and payment pauses cut debt bills, taking the ratio in Q1 2021 to its lowest since the series began in 2005.
Frequently Asked Questions
What is the debt service ratio?
The debt service ratio measures total required household debt payments (mortgage, auto, student loans, credit cards) as a percentage of disposable personal income. A ratio of 10% means 10 cents of every dollar of after-tax income goes to debt payments.
How high did the DSR get before the 2008 crisis?
It peaked at 15.85% in Q4 2007, just before the 2008 financial crisis. Over 15% of household income was going to debt payments, leaving little room for error when house prices fell and jobs disappeared.
How do rising interest rates affect the DSR?
New borrowers feel higher rates straight away, and so do people with adjustable-rate mortgages or variable-rate debt. The size of the step: one extra point of interest on a $400,000 30-year mortgage adds roughly $220–$275 a month to the payment (about $330 if only interest is paid).
Why did the DSR fall to a record low in Q1 2021?
Three things at once: stimulus checks raised incomes, payment pauses let millions skip mortgage payments, and low rates let borrowers refinance into cheaper loans. The ratio fell to 9.05% in Q1 2021, the lowest since the series began in 2005. It has climbed back since, as rates rose and the stimulus ended.