CNN has reported that household debt has fallen for the first time ever (technically, in the past 57 years, the amount of time the Federal Reserve has been reporting flow of funds, which this data comes from). The amount of debt held by American households has fallen 0.8%, or about $30 billion dollars, to $13.9 trillion. Keep in mind that these are third-quarter numbers, so we may see more changes when fourth-quarter results are released.
On a personal level, this is great news, we seem to be collectively pulling our heads out of the sand. However, on a macro level, with consumer spending comprising 70% of the U.S. overall GDP (according to CNN in the same article, not sure of their source), there seems to be a fine line between spending rationally, and the economy coming to a screeching halt.
Summary of results from Federal Reserve
Links to complete Flow of Funds report from Federal Reserve, in addition to other graphs and information
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