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He said: "I am very concerned by the buildup of household debt in relation to income.
This creates a more volatile base for our economy because companies' debt in relation to equity gets skewed.
The second comparison — the open circles — looks at the short-term bank debt in relation to each country's national debt.
Japan has been able to finance a much higher government debt (in relation to its GDP) without difficulty.
There's an enormous stock of personal debt in relation to people's earnings, which is now going to have to be replaced by a build up of personal savings.
But do we need to have a surplus, or would it be adequate (as Labour proposes) just to start reducing the national debt in relation to GDP?
Similar(37)
But assuming even conservative projections about inflation and economic growth, this ratio of revenue to spending will keep America's debt stable in relation to the country's economic output.
He drew attention to the fact that the debt burden measured in relation to income was heaviest among poor households.In this section Reining in Auntie The sins of the fathers Shed pounds with a PA Why is Britain moving north?
That's the problem with quoting fixed payments like pensions (and debt service) in relation to GDP: as GDP falls, the cost rises.
Therefore, an approach that is easier to interpret is simply to compare the interest expense paid on the national debt outstanding in relation to the expenditures that are made for specific governmental services such as education, defense and transportation.
It's also wise to keep your total debt low in relation to your credit limits, as credit utilization comprises 30% of your score.
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