Household debt surges 390 billion as California, Arizona, Nevada adopt no concessions celebrity lifestyles

[Tall Traveler]

Originally Posted by lovecrowds

This latest surge of debt seems to be mainly coming from California, Arizona, Nevada and other Western cities.

Shame on the residents of Michigan, Ohio and Pennsylvania for being so fiscally conservative.

What a bunch of losers on debt in Michigan and Ohio for only having about half as much debt per-capita of California.

Californians, Arizonans and Nevadans collectively are taking out tremendous amounts of debt lately.

California and Arizona on per-capita are around the peak of 2008.

Arizona which is one of the poorest states per-capita has surged past the much-richer per-capita New Jersey on per-capita debt.

Amazing, how Ohio, Michigan and Pennsylvania residents collectively don't like participating in this debt circus.

Ohio and Michigan have similar per-capita incomes to Arizona but Arizonans on a per-capita basis have about 50% more debt.

A report from last year showed the the average household in Oxnard-Thousand Oaks and Vallejo-Fairfield metropolitan areas in California had triple the household debt per-capita of Bloomsberg-Berwick in Pennsylvania or Charleston in West Virginia.

https://www.newyorkfed.org/medialibr...df/HHDC_2022Q4

https://www.census.gov/quickfacts/fact/table/OH,MI,AZ/

https://www.federalreserve.gov/relea...:all;year:2022

Just my perception maybe but I think most Arizonans seem to adopt a lifestyle at the limit of what they can afford, much like Cali.

[mattja]

Originally Posted by Buckeye77

Well, if your debt is greater than your income.....

If I maxed out my credit cards (my AMEX has a really high credit limit, but currently zero balance) my debt could exceed my income. Easy to do.

And if you include home mortgage in your debt, guess what.

But the definition of debt-to-income-ratio I found is monthly debt payments / by gross monthly income.

So, if it's greater than 1.0, your monthly debt payments exceed your monthly gross income.