Take household debt and look at the "change from year ago" values: That's household borrowing, in billions of dollars. That's the blue line.
Take household debt service payments "as a Percent of Disposable Personal Income" and convert it to household debt service payments in billions of dollars. That's the red line.
Look at what happened after the 2001 recession:
|Graph #1: Household Borrowing in Billions of Dollars (blue) and |
Household Debt Service Payments in Billions of Dollars (red)
In 2007, after the fourth attempt, household borrowing went into free fall. You know what happened after that.