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Woodstock Institute releases study documenting disturbing trends in household debt Print E-mail
Written by Tom Feltner   
May 04, 2006

Woodstock Institute is pleased to announce the release of a new report examining the alarming levels household debt in the United States.  Examining the different measures of debt and what they tell us about how households are savings and spending, Reinvestment Alert 30: U.S. Households Debt Levels are Worrying No Matter How You Look at Them underscores the importance of Woodstock’s work to figure out how ordinary families can build, not deplete, financial assets.  Some key findings are provided below.

The full report is available for download by following the link below:

Reinvestment Alert 30: U.S. Household Debt Levels Are Worrying No Matter How You Look at Them

Some key findings:

  • Household debt rose from 71% of disposable household income to 126% between 1979 and 2005.
  • Total household liabilities increased from 20% of total household assets to 29% between 1999 and 2004.
  • Homeowners’ equity in their homes declined from 67% of their homes’ value to 57% between 1979 and 2004 despite rising home values that would add to an owner’s equity.
  • The median value of mortgage debt for families in the bottom fifth of the income distribution increased 191% and in the second lowest fifth, 124% between 1989 and 2001.
  • Self-reported credit card debt data show that between 1989 and 2004 credit card debt, in inflation adjusted dollars, doubled.
  • Credit card industry data show that the mean household credit card debt for families with at least one credit card exceeds $9,000.  Since 40% of families pay their credit card bills in full every month, families who carry balances have average balances considerably in excess of $9,000.

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