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Thursday, October 13, 2011

Personal Debt Declining Is Actually Not Good?


What Are The Best Debt Relief Programs?
We find it incredible that there was not one quarterly decline in household debt since 1952 (as far back as we could find data) until the third quarter of 2008 from where we've had 12 consecutive quarterly declines.    We didn't even have one quarter of decline during the worst recessions since the Great Depression (up until the recent Financial Crises in 2008) in 1973-74 and 1981-82--  NOT ONE!!  During the period from the year 2000  to 2008 household  debt rose from 68% of GDP to 100% of GDP.  But, since the 3rd quarter of 2008 we had 12 consecutive quarterly declines as total household debt declined by almost $1 tn.


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