Friday, September 12, 2008

Household Debt

The government isn't the only one with debt up to their eyeballs.

Household Debt Service Ratio

  • An estimate of the ratio of debt payments to disposable personal income.
  • Debt payments consist of the estimated required payments on outstanding mortgage and consumer debt.
Financial Obligations Ratio
  • Adds automobile lease payments, rental payments on tenant-occupied property, homeowners' insurance, and property tax payments to the debt service ratio.

Source: Federal Reserve