Last week, the Federal Reserve issued the Flow of Funds report, which provides a good overview of the underlying financial situation in the US. Here are a few charts to highlight some trends.
First, the good news:
Mortgage debt has been decreasing since just before the recession started, indicating that consumers are dealing with the effects of the housing bubble. On the other hand:
Consumer credit is now at its highest level ever.
However, total consumer debt payments as a percent of total disposable income are at low levels:
Finally, household net worth is at its highest level since the recession ended: