Types of Consumer Debt

• When financial analysts and television pundits talk about rising consumer debt or a decrease in consumer debt, the aggregate amount monitored by the Federal Reserve and government officials is what is being referenced. Types of loans that make up the aggregate of consumer debt include personal credit card account balances, store charge cards, automobile loans, student loans and any other type of personal loan a consumer may contract with a commercial lender. Creditors provide anonymous data on our consumer debts to statisticians, who in turn produce analytic data for economists.
  
  

Federal Data

• Monthly data released by the Federal Reserve containing consumer credit information as calculated for the nation as a whole, shows that U.S. consumers have steadily increased their debt obligations since 2005, peaking in the third quarter of 2009, and then showing a slight, yet consistent decrease over the next 12 months until the third quarter of 2010. Data for the end of 2010 indicates that consumer debt increased slightly, but remained below 2006, 2007, 2008 and 2009 levels.
  
  

Federal Reserve's Analysis

• The Federal Reserve also tracks data on total household debt, which includes all personal debts plus mortgage obligations. An additional tracker incorporates what the Fed terms "financial obligations" and consists of residential rent payments, automobile lease obligations, homeowners' insurance premiums, and property tax obligations. Considered as a whole, the data shows an increase through the 1980s, peaking in 1989, declining through the middle of 1993, and then gradually increasing through the end of 2008. When the economic conditions, now called the Great Recession hit at the end of 2008, consumers tightened their belts and according to the data, worked to decrease consumer debt obligations.
  
  

A Different Approach

• A report published by Ohio State University states that the prevalence of personal bankruptcies in the United States indicates a need to track consumer debt in our society. According to the study, data gathered over an extended period can assist in predicting the debt condition of private citizens and our propensity for consumption during slow and growing economic times, as well as track our seasonal spending habits. In this process, consumer debt includes all personal loans, including home mortgages.