Household Income, Debt Up
Real estate investments have kept the finances of American households in good shape, but consumers have built up mountains of debt and bankruptcy filings have surged, Federal Reserve Chairman Alan Greenspan said. Decades of low interest rates and extra cash from refinancing have given people flexibility in managing their debt, the Fed chief said at a credit union conference on Feb. 23. But consumer debt hit a record $2 trillion in December, according to the most recent Federal Reserve figures. That debt includes credit card balances and car loans but not mortgages.
