Quote from article: "While some progress in consumer debt reduction has been made, the heavy lifting of meaningful deleveraging still lies ahead," the study says. Until consumers repair their balance sheets, they are unlikely to increase spending or take on new debt even with interest rates close to zero. That could continue to hamper the recovery, because consumer demand makes up more than 70% of the U.S. economy.”
See it is just a given that our economy requires the individual to be in debt. For the USA to have what the experts call a “healthy economy” requires citizen indebtedness. That should not be! Capitalism has become mutated and real systemic change needs to occur in the infrastructure of our economic system in order for it to actually become and remain healthy. Contrary to the talking heads out there the desire of the private sector to reduce its indebtedness is a GOOD THING.