U.S. Household Debt Hits 29-Year Low

Analysts still fear consumer spending could stall though

U.S. household debt is at its lowest level in 29 years, according to the Federal Reserve. The ratio of debt payments to disposable personal income fell to 10.61 percent from 10.72, the lowest level since 1983. This should allow for more money to be used for consumer spending and to support the economy. "Consumers have more money in their pockets to spend, which should be positive for the economic recovery going forward," said Gennadiy Goldberg, an economist at TD Securities in New York. The debt ratio, which takes into account outstanding mortgage and consumer debt, peaked in 2007, shortly before the economy tipped into recession, and the Federal Reserve has sought to help consumers by keeping interest rates near record lows. But analysts worry that consumer spending could stall if Congress fails to prevent higher taxes from taking hold next year. (NBC)

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