WAVE 3 News Editorial - December 5, 2017: Household Debt

WAVE 3 News Editorial - December 5, 2017: Household Debt

LOUISVILLE, KY (WAVE) - Holiday spending is always welcome for our economy - particularly when you shop local and help your local communities.

Cautionary flags are flying, though, as household debt right now is higher than it has ever been - just under $13 trillion, above the previous peak of the Great Recession in 2008.

Our overall economy is growing, and Wall Street is setting records, but our household budgets are stretched thin.

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Many look forward to an income tax refund as soon as possible after the holidays. That will certainly help for the immediate future, but if a new tax plan is passed affecting the 2018 tax year includes the elimination of a deduction for state taxes, that rebate could be less a little over a year from now, stretching folks even thinner.

Keep a close eye on your credit card balances. Delinquencies are up from a year ago.

Household debt may not necessarily be the top economic indicator, but it packs one of the biggest punches.

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