DECLINING DEBT
11/21/2024 |
In 24Q3, household debt rose by $147 billion and now stands at $17.94 trillion. However, income increased faster in 24Q3 and now stands at $21.80 trillion. Therefore, the debt-to-income ratio continued its decline and is now 82%, meaningfully below the 86% pre-pandemic level, and is back where it was in 2003. The debt-to-income ratio peaked at 120% in 2008. The continued decline suggests that, collectively, rising debt burdens are manageable.