10 Facts About Household debt

Household debt is defined as the combined debt of all people in a household.

Several economists have argued that lowering this debt is essential to economic recovery in the U S and selected Eurozone countries.

Household debt can be defined in several ways, based on what types of debt are included.

Common Household debt types include home mortgages, home equity loans, auto loans, student loans, and credit cards.

Burden of Household debt can be measured in terms of the amount of interest it generates relative to the income of the borrower.

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Household debt rose as living standards rose, and consumers demanded an array of durable goods.

In Denmark, Iceland, Ireland, the Netherlands, and Norway, debt peaked at more than 200 percent of household income.

Twenty years ago, the average American household's debt was 83 percent of its income; by a decade ago, that had crept up to 92 percent; but by late 2007, debts were 130 percent of income.

The spending enabled by this rising consumer Household debt can help create a virtuous cycle in which more demand for goods and services creates more jobs, which creates rising income.

For example, this debt accumulated over a 30-year period in the U S and much of the increase was mortgage-related.