Household Debt

Household debt rose to $13.15 trillion by the end of 2017.

https://www.wsj.com/articles/u-s-household-debt-up-193-billion-to-13-15-trillion-to-end-2017-1518537600

 

Household income rose 4.1% to $59.149 in 2016.

https://www.advisorperspectives.com/dshort/updates/2017/09/19/u-s-household-incomes-a-50-year-perspective

 

The household debt to disposable income started to decline from 13% in 2008 to 10% in 2012 and remains flat through 2017 at 10.29%.

https://alfred.stlouisfed.org/series?seid=TDSP&utm_source=series_page&utm_medium=related_content&utm_term=related_resources&utm_campaign=alfred

 

Comments

 

We are gaining in household income, but continuing to hold the line on household debt as a percent of income.  But the actual dollar amount of debt is rising along with income.

 

Disposable income includes all net income and includes welfare and Social Security retirement income. The increase in welfare costs in the 2008 to 2017 era accounts for the rise in the median household income during that period.

 

I have not found any household income data for 2017-2018. Hmmmm…I suspect that household income has risen and I suspect Democrats in the “deep state” do not want to release this information until after November 2018.

 

There is one kind of good household debt. It is a 15 year home mortgage that allows us to invest in an asset that appreciates in value.  You home equity is your home value minus you mortgage loan balance.  It is the basis of your net worth and is your ultimate back-up retirement plan.

 

Norb Leahy, Dunwoody GA Tea Party Leader