Charts show US Household debt decreasing, paid-up mortgages increasing.

The average household debt leveled off at the crash three years ago and has declined about ten percent since then. (First chart).    Credit card payments hurt but mortgages represent most of the debt.  The second chart shows that mortgage delinquencies were increasing two years before the crash and have been decreasing for the last two years with 90% of all mortgages current.  The numbers of serious delinquencies are pretty bad and the truncated chart (which cuts off the 0 to 80% range) exaggerates the effect.  Despite the recent decrease, the market has a long way to go while banks repossess and put these defaults on the market.  Source  Calculated Risk using numbers from the New York Fed.
(Click charts to enlarge)

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