Household Debt: Recent Trends and Potential Consequences (CRS Report for Congress)
Premium Purchase PDF for $24.95 (17 pages)
add to cart or
subscribe for unlimited access
Pro Premium subscribers have free access to our full library of CRS reports.
Subscribe today, or
request a demo to learn more.
| Release Date |
Aug. 10, 2009 |
| Report Number |
R40765 |
| Report Type |
Report |
| Authors |
Brian W. Cashell, Specialist in Macroeconomic Policy |
| Source Agency |
Congressional Research Service |
Summary:
As long as debt is balanced by assets, as in the case of mortgages, and the cost of servicing thatdebt is manageable, households may not feel squeezed. As recent experience shows, however, ifthe value of those assets falls, households may find themselves holding more debt than they want.That seems to have resulted in a slowdown in consumer spending, and the saving rate, which hadbeen below 1%, has begun to rise. In the longer run, those households that accumulate debt tofinance consumption spending and not investment may find themselves ill prepared forretirement. This report examines the economics of household debt.
