U-M report: 1 in 5 U.S. households underwater with debt
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.