Charting the Course: Household Debt Service Ration at Lowest Level Since 1980

Aided by lower interest rates household debt service ratio persists at low levels

  • U.S. households embarked on historic deleveraging starting with the 2008 U.S. financial crisis
  • The process was aided by dramatic reduction of interest rates by the FED
  • Low debt service ratio indicates a strong buying power of the U.S. consumer
  • U.S. and global economy may benefit from this strong buying power as long as consumer confidence maintains stability


Why we Chart the Course? Charts speak a thousand words. They visually and concisely show economic, financial, and market trends. Charts help us build assumptions and conduct analyses for strategic decisions like exiting businesses, deploying capital, building investment portfolios, etc. In Charting The Course, we bring to your attention some of the charts we gather and analyze in our daily research and analyses of economy, business environment, investment and capital markets. We hope you find it of value.


Founded in 1994, Defoe Redmount is independent financial advisory and asset management firm working with entrepreneurs and smaller family offices, helping them grow businesses and wealth by offering financial strategy advisory, asset management, and private equity capital.