Figure 32. Indicators of household financial stress, 1993-2008.
Data are plotted as curves. There are two panels. In the top panel, the financial obligations ratio for households starts in 1993 at about 16 percent, generally rises to nearly 18 percent in 1997, remains at about that level through 2000, and then increases to 19 percent in late 2001. It edges down to about 18.5 percent by late 2004, rises fairly steadily to about 19.4 percent at year-end 2007, then drops to just under 19 percent in the third quarter of 2008, and ends the year slightly up, at about 19 percent even. In the bottom panel, the number of bankruptcy filings per 100,000 persons starts in 1995 at about 300, generally rises to about 500 by early 1998, trends down to about 400 through the end of 2000, moves up to 520 in early 2001, and stays at around that level through early 2005. The ratio jumps in the first half of 2005 to about 650 and then spikes to around 900 at year-end 2005. It tumbles to about 150 in early 2006 and then begins a steady climb, ending 2008 at about 375.
NOTE: The data are quarterly. The financial obligations ratio is an estimate of debt payments and recurring obligations as a percentage of disposable personal income; debt payments and recurring obligations consist of required payments on outstanding mortgage debt, consumer debt, auto leases, rent, homeowner's insurance, and property taxes. The series shown for bankruptcy filings begins in 1995:Q1 and is seasonally adjusted.
SOURCE: For financial obligations ratio, Federal Reserve Board; for bankruptcy filings, staff calculations based on data from Lundquist Consulting.
