Household Debt Is At A Peak, But Here’s Why There Are Better Things To Worry About

. “When prices rise, everything denominated in dollars tends to rise, including debt levels.”

What’s important, however, isn’t how much Americans owe, Adams said. Instead, it’s whether they can make their monthly payments.Household debt service as a percentage of disposable income, a statistic also compiled by theAt its current 9.6%, it’s nearly 2 percentage points lower than the average quarterly reading over the last 42 years. By comparison, just before the housing market went bust in 2007, more than 13% of U.S. disposable income was earmarked for debt payments.

“Given that most household debt is fixed rate, and there’s widespread inflation, household debt service as a share of income is probably more helpful for understanding household debt burdens than the dollar value of their liabilities,” Adams said. So yes, how much Americans owe is on the rise. No doubt about that. But there are better things to worry about.

Great

What a lame article. Doesn't mention what the other things are and inflation is top of mind of Americans

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