Consumer Law

Must Read: New York Times Series on Consumer Debt

By Brian Wolfman

I'd bet you are tired of hearing that this or that is a "must read." But if you are interested in American consumer debt, you really will want to read this article in today's New York Times. It's the beginning of a series on the topic, complete with online video and interactive features. Get this: The average American household has about $118,000 in debt but saves only $392 per year (an unbelievably low .4% of disposable income), the lowest level since the Great Depression. In the 1940's, annual household savings were $12,807, or 26% of household income. In 1957, 42% of households had no debt; today, that figure is 26%. In 1961, 53% of homeowners had no mortgage debt; today, 31%. And, in 1967, 6% of households carried a credit card balance while 40% do so so today. The average American family today has 13 credit cards and over $8500 in credit card debt.

Full post as published by CL&P Blog on July 20, 2008 (boomark / email).