Latest Posts
Home > Debt Relief Industry > Debt in America Better Than Figures Show?

Debt in America Better Than Figures Show?

From Deutsche Bank, some interesting numbers on debt in America.

“Market participants have recently fretted over debt levels in the United States, especially in light of the S&P downgrade of US sovereign debt. While the debt ceiling crisis and subsequent loss of AAA rating have highlighted the massive rise in government debt since the recession began in December 2007, total domestic US debt as a percentage of GDP has actually declined since peaking in Q1 2009 at 367%. In fact, domestic debt as a percentage of nominal GDP is now near pre-crisis levelsand there have been some meaningful changes within the main sectors of US debt that could have important implications for the economy.

Two of the most significant changes have occurred in the household and financial sectors, which have obviously had devastating effects on both the housing market and consumer spending. Household debt as a percentage of nominal GDP peaked at 99.5% in Q1 2009 and in absolute dollar terms, household debt peaked in Q1 2008 at $13.9 trillion. Since then, debt outstanding in this sector has declined approximately 4.4% and now stands at the lowest level since Q2 2005 (89%), which is actually near its 10-year average. The deleveraging in the financial sector has been even more severe as the recent downturn has seen debt reduced by nearly $3 trillion and now stands at 95% of GDP—the lowest level since Q1 2003. In short, the deleveraging process for households and financial institutions has been severe. However, the fact that household debt as a percentage of GDP is now near the 10-year average and financial sector debt is back to 2003 levels, gives us modest confidence that the worst of the deleveraging process, at least within these two economically important sectors, may be behind us.”

Debt in America Better Than Figures Show?
Get Out of Debt Guy – Twitter, G+, Facebook

I can always use your help. If you have a tip or information you want to share, you can get it to me confidentially if you click here.

Debt in America Better Than Figures Show? by

Share This and Spread the Word

About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.

Close

I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.


  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.