Intrepretation of Household Debt in America

Discussion in 'Economics' started by deltahedge, Apr 3, 2013.

  1. The link below is a post done by NPR back in Q3 2012 regarding the debt of the average US household.

    I find myself highly skeptical that Household Debt Payments as a percentage of disposable income stands at a measly 10.5%. So if someone were to make $100K per year and assuming a 30% tax rate between state and federal would leave him/her with a disposable income of $70K. This figure suggests the average household is then left with paying only $7500 in debt payments in the year? Huh? Sounds WAYYYY too low.

    When you think about the credit cards and more importantly mortgage payments one pays on an annual basis a more realistic figure stands at 20-25%.

    Is my interpretation off or do I just hang around with people who are levered to the hilt? :)