US: household debt at lowest level in 6 years

Last year, according to figures from the Federal Reserve, total U.S. household debt (including mortgages and credit cards) fell to its lowest level since the final quarter of 2004, The Wall Street Journal reports.

The fall in 2010 (to $13.4tn) marked the second year in a row total U.S. (household) debt has fallen.

As the paper reports, `with the help of rising stock prices`, the fall in debts meant average household net worth stood at $505,000 at the end of last year - up 5.1% from 2009, but still far below a high of $595,000 recorded during the second three-month period of 2007 (before house prices dropped).

A spokesperson at debt management company Gregory Pennington commented: "It`s interesting to take a look at how residents of other countries are handling their debts - particularly in the U.S.

"After all, our economy is closely linked to America`s, and what happens there tends to have an impact on what happens over here as well."



Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.