The household to debt ratio is an approximation of the ratio of debt payments to disposable personal income
Economists, analysts, retailers, investors, policymakers
The movements in the household debt levels have implications for spending for consumers. Consumer activity is a major factor in economic growth. When debt levels rise, consumers are likely feeling confident in current and future economic conditions. However, when levels drop, it is usually a sign that households looking to prepare for heightened financial uncertainty, leading to less going towards purchases of goods and services.