Register | Forgot Your Password? | Close

Paying off debt became a little slower as the fiscal cliff fix comes into play. American households are spending less of their income to pay off debt than ever in almost 30 years, according to an article by the Wall Street Journal.

In the third quarter of 2012, 10.6 percent of after-tax income was spent on debt payment requirements. It hasn’t been this low since 1984.

The start of this came with the housing market bubble crash, according to an article in Economic Times. Since then it has been a slow recovery, and with more money going to taxes, it could slow down the amount of debt paid off.

"You have a lot of people refinancing their mortgages at lower rates," Gennadiy Goldberg, an economist at TD Securities in New York, said to Economic Times. "Some homeowners have more money in their pockets to spend, which should be positive for the economic recovery going forward."



EMAIL: alovell@deseretnews.com
share this story:
Attention KTAR.com Comment Users: We have recently changed our comments boards.
We would like you to be part of the conversation and The Voice of Arizona by logging in with your Facebook, Twitter, Google+ or Disqus account. Existing KTAR (Arizona Sports) account members will need to create a Disqus account or use one of the aforementioned social media logins. Thank you.
comments powered by Disqus

World Class Arizona

  • Dignity Health

    World Class People. World Class Company. Excellent care, delivered with compassion, for all in need.

Voice For A Better Arizona

  • Family in Focus

    KTAR spends the week taking a look at the issues a modern Arizona family faces.