Consumer Debt Continues to Decline

Consumer debt continues to decrease. Households seem to be getting their finances in order, which eventually should be good news for the economy. With less debt hanging over their heads, consumers will be more willing to open their wallets, which can help stimulate economic growth and create more jobs.

The ratio now is below 1.1 after having been over 1.3 in early 2008. However, by historic standards, the ratio is still high. Up until 2001, it was below 1.0, and before 1986 it was less than 0.8.

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