Posted on Tue, May 8, 2012 : 2:13 p.m.
U-M report: 1 in 5 U.S. households underwater with debt
By Cindy Heflin
About one in five U.S. households owes more on credit cards, student loans, medical bills and other non-collateralized debt than it has in savings accounts and other liquid assets, a new University of Michigan study finds.
The report found no improvement in financial liquidity among U.S. households between 2009 and 2011 except among those who had more than $50,000 in liquid assets.
It also predicts the mortgage crisis will continue for the next few years, though the number of families affected is expected to drop.
Frank Stafford, an economist at the U-M Institute for Social Research, co-authored the report with U-M researchers Bing Chen and Robert Schoeni.
- Read more about the report on the ISR website.
Comments
dexterreader
Wed, May 9, 2012 : 1:10 p.m.
@cinnabar7071 .... good for you!! You are smart!! That is my goal also. Working toward it as best I can, but with 2 boys in college, it's very, very difficult. But I'm persevering and will not give up!!
Razor
Wed, May 9, 2012 : 12:15 p.m.
Count my household in....2 jobs both took pay cuts,increased healthcare costs, sent us to chapter 13...tighter budget now, but feel good about the decision.
walker101
Wed, May 9, 2012 : 12:12 p.m.
This must be the change he was talking about?
u812
Wed, May 9, 2012 : 1:04 a.m.
would be 1 in 3 with Romney.
cinnabar7071
Tue, May 8, 2012 : 8:34 p.m.
Not a dime in debt here, and feeling good. Then again at 50 I don't know the pleasure of driving a new car off the dealership lot, I can live with that tho.
Psudolus
Tue, May 8, 2012 : 7:36 p.m.
Student Loan Debt is not unsecured, it is in fact the most secured since it will survive a bankruptcy.
jim
Tue, May 8, 2012 : 6:59 p.m.
My advice? Just pretend you're a congressman. Vote to raise your debt ceiling, give yourself a nice fat raise, then go on vacation for a month.
jcj
Tue, May 8, 2012 : 6:52 p.m.
Ironically part of their debt is to pay the ones that did the study.
Mike
Tue, May 8, 2012 : 6:44 p.m.
Count me in.............