Money in my Pocket
01/09/2013 | | debt service payments, Default, disposable income, Graphs and Laughs, Graphsandlaughs, Low interest rates
Total debt service payments as percentage of disposable income have fallen from a peak of 14.1% in 7/07 to just 10.6% today, a level last seen in 10/93; a decline of 25%. This is due to a combination of low interest rates, rising disposable income, and lots of mortgage defaults, which have reduced household debt from 100% of GDP in 4/09 to just 86% now.