Excessive household debt was crucial in explaining the severity of the Great Recession in the United States

Excessive household debt was crucial in explaining the severity of the Great Recession in the United States. So where are we now? Have households strengthened their financial position since 2009? Are household balance sheets strong enough to prevent another massive pull back in spending if there are significant job losses? Much of the focus on household debt/wealth revolves around quantitative data. However, a more qualitative approach based on questions used in a survey during the Great Recession yields some alarming results. The survey of 25,000 people asks simple questions such as; Could you come up with $2000 for an emergency? The results on each individual question turn out some interesting results. When combined, however, the survey concludes that 35% of individuals both have too much debt and should an emergency strike do not have capacity to cover their expenses. Here is a summary of the survey results (VIEW LINK)