Part 3/8:
When analyzing debt data, context is critical, especially when juxtaposing it against income levels. While inflation-adjusted household income growth hovers near the historical average, recent turbulence—from 2020 to 2023—has led to distinct fluctuations. Currently, the growth rate of real household income stands around 2%. However, for numerous families, rising costs surpass this growth, leading to negative income growth after accounting for personal inflation rates.
This financial strain is further highlighted by the alarming delinquency rates across various debt categories. Although delinquencies related to mortgages and student loans remain low, other segments are experiencing significant issues.