Household Debt is Improving, But There's Still a Long Way to Go

by: Deep Value Guy

U.S. households are slowly repairing their (private) balance sheet. We’ve a long way to go, but according to the latest Flow of Funds report, we’re making progress.

See the chart below: (Click to enlarge)household debt slide

But our total debt burden continues to climb. As households and businesses cut debt, governments (state and federal) are adding it even more quickly. So America’s overall debt burden to GDP continues to rise.