The great deleveraging – US households see access to debt diminish. Housing affordability and reversion to the home price to family income ratio.

Households in the US continue to face a painfully slow process of austerity via debt deleveraging. In a debt based system like the one we live in access to debt is viewed by many as access to money. With the markets reaching a peak debt situation households have been in a major process of deleveraging since 2007. In fact, household debt obligations are now back to levels last seen in the early 1990s and similar to levels of the mid-1980s. Most of this debt removal has occurred via the painful process of millions of mortgage foreclosures.

Household debt to disposable income levels are now back to levels seen three decades ago....Many households are unable to access debt in the current markets. Many have shaky incomes and jobs that have very little security. Many younger Americans burdened by the only large growing class of debt, student loans ... Household wages have been weak and falling and many have no money saved and live paycheck to paycheck.... The only group continuing to leverage up are younger Americans going into massive student loan debt with the running higher education bubble.

                                               ......................... Mybudget360