Household debt not a concern

Household debt levels may now exceed their pre-crisis peaks in dollar terms but, more importantly, debt remains at an easily manageable level relative to disposable incomes and, after factoring in low interest rates, the cost of servicing that debt is close to a record low. Furthermore, taking into account the asset side of the household balance sheet, households’ net worth is at a record high, equivalent to 667% of disposable income.