The great payback

I meant to post this chart last week when the Bank of England first published the numbers on home equity withdrawal. As Housing prices crash and home equity evaporates, people have found it increasingly difficult to pull cash out of their homes through home equity loans. In fact, debt serfs have actually begun to paydown their debt. During the third quarter of this year, the payback amounted to 2.4 percent of post tax income.

For the first time in a decade, household debt is beginning to fall.