US Consumers have been reducing their debt in the aggregate in the wake of the housing bust and financial crisis. While a portion of this deleveraging has come from defaults and foreclosures on mortgage debt, a key driving factor has been a sharp decline in the number of consumers taking on additional debt. This decline has been widespread, as virtually all types of consumers—high- and low-income, high- and low-risk, those living in high-debt regions and low-debt regions—have reduced their borrowing activity since the early to mid-2000s.
The complete article from the KansasCityFed is here
