Household Debt Is Dangerously High

Household debt is dangerously close to 2008 levels.

Americans are taking on a lot more debt, and household debt has risen at an alarming rate.

Total household debt climbed to $12.58 trillion at the end of 2016.   This was an increase of $266 billion from the third quarter.

For the year, it ballooned by $460 billion.  This was the largest increase in almost a decade.  That means the debt loads of Americans are flirting with 2008 levels.  At that time total consumer debt reached a record high of $12.68 trillion.

While that may sound alarming, there is one big difference between now and 2008.  So far there have been fewer delinquencies.  Furthermore, there have been fewer bankruptcy filings.

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