OECD iLibrary: Statistics / Household Debt

This household leverage ratio measures the indebtedness of households in relation with their income, that is their spending and saving capacity. High leverage ratios are often interpreted as a sign of financial vulnerability though not only debt and liabilities but also assets should be considered in such an assessment. High indebtedness levels generally increase the financing costs of the borrower, deteriorate balance sheet positions and may restrict access to new financing.

The household debt-to-GDI ratio shows the debt of households and non-profit institutions serving households (NPISHs), as a percentage of their Gross Disposable Income (GDI).

via OECD iLibrary: Statistics / OECD Factbook / 2013 / Household Debt.

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