Household Debt Ratios Are Lowest Since 1993-94

The chart above shows the ongoing de-leveraging of U.S. households based on new data released yesterday by the Federal Reserve.

In the third quarter of 2011, household debt service for required payments on outstanding mortgage and consumer debt as a share of disposable personal income fell to 11.09%, the lowest ratio since the fourth quarter of 1994; and the ratio for all household financial obligations (adds automobile lease payments, rental payments on tenant-occupied property, homeowners' insurance and property tax payments to the debt service ratio) remained at 16.15% (same as Q2), the lowest ratio since the fourth quarter of 1993. 

Let that be a lesson for the U.S. Congress.....