This Chart Says It All - US Household Continues Deleveraging at Record Pace

US households continue to shed debt at a record pace - this graph says it all...

US households are finally "just saying no" to debt.

To put this breakdown in perspective - the Fed's data on this goes back to 1976, and household debt grew every single year until 2009.

In fact, we're looking at two straight years of deleveraging in terms of both mortgage debt and consumer credit - another record.

Yikes!

Hat tip to friend and reader Carson for the tip on this data.

Related reading: Are Deflationist Arguments Still On Track?

US Consumers on Pace to Pay Down Debt in...138 Years?

US households are paying back their debts at a glacial pace reports the Federal Reserve.

Household debt peaked at $13.9 trillion in 2008 (with a "T"). Amidst all the deleveraging and pain of the last 18 months, total debt has inched down just a hair, to $13.8 trillion.

At this rate, the US consumer will pay down their debts in another 138 years or so - should go by in a heartbeat!

Until the household balance sheet in America is more under control, it's hard to picture a sustained economic recovery...at least one that is fueled by the consumer. And since the consumer accounts for 70% of GDP in the US, this seems foreboding to say the least.

Related reading: Deflationary trends appear to be winning.