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Federal Reserve Bank of New York
Current Issues in Economics and Finance
The financial crisis at the kitchen table: trends in household debt and credit
Meta Brown
Andrew F. Haughwout
Donghoon Lee
Wilbert Van der Klaauw
Abstract

Since the onset of the financial crisis, households have reduced their outstanding debt by about $1.3 trillion. While part of this reduction stemmed from a historic increase in consumer defaults and lender charge-offs, particularly on mortgage debt, other factors were also at play. An analysis of the New York Fed’s Consumer Credit Panel—a rich new data set on individual credit accounts—reveals that households actively reduced their obligations during this period by paying down their current debts and reducing new borrowing. These household choices, along with banks’ stricter lending standards, helped drive this deleveraging process.


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Meta Brown & Andrew F. Haughwout & Donghoon Lee & Wilbert Van der Klaauw, "The financial crisis at the kitchen table: trends in household debt and credit" , Federal Reserve Bank of New York, Current Issues in Economics and Finance, volume 19, issue April, 2013.
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Keywords: Households - Economic aspects ; Debt ; Mortgages ; Consumer behavior ; Debt ; Financial crises
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