Americans aged 40 to 59 now account for nearly half of all new consumer bankruptcies, the largest share for that age bracket since 2017, as middle-aged households buckle under debt and rising costs.
Middle-Aged Americans Lead the Rise
Consumers aged 40-49 made up 26.8% of new bankruptcies, the highest share for that age group since the third quarter of 2015 and the largest of any single bracket, according to data shared by The Kobeissi Letter.
The 50-59 group accounted for another 23.1%, bringing the combined share of Americans aged 40-59 to 49.9%, the highest since the first quarter of 2017, though still below the 54.3% peak in the fourth quarter of 2011 following the financial crisis.
Younger and Older Americans Move in Opposite Directions
Americans 70 and older now make up 21.5% of new bankruptcies, their largest share since the second quarter of 2017, while adults aged 18-29 account for just 5.9%, their lowest share since mid-2014.
"Older Americans are falling behind on their debt," the market commentator added.
Household Debt Climbs Across the Board
Credit card and auto loan balances each rose 1.7% in the second quarter of 2026, while home equity lines of credit rose for a 17th consecutive quarter, according to the Federal Reserve Bank of New York.
Student loan delinquencies also ticked up, with 10.6% of balances now 90 or more days past due.
Energy Costs Are Reigniting Inflation
U.S. annual inflation held at 3.4% in August, matching July, while prices rose 0.4% for the month, according to the Bureau of Labor Statistics.
Gasoline was the single biggest driver, jumping 3.9% and accounting for more than a third of the entire monthly increase, with fuel oil up 52% over the past year.
Fuel Costs Are Hitting Retailers
The national average for gas hit $4.32 a gallon Monday, up 17 cents from a week earlier, while diesel climbed to a record $6.23 a gallon amid intensifying conflict in the Middle East, according to AAA.
This week, Costco Wholesale Corp. (NASDAQ: COST) raised prices on its private-label motor oil and capped purchases at two units per member per week, as rising crude oil costs tied to the ongoing conflict in the Middle East ripple through the auto care aisle.