In 2007, real median household income had a local peak of $58,149, and then fell off a cliff at the same time as the credit cycle, which reached its own peak in 2008 Q3 as the financial crisis set in.
Real median household income bottomed in 2012, and then debt followed in 2013.
Looking at the most recent year of data available, both categories are now back above pre-crisis highs. Real median household income has now surpassed its all-time record in 1999 – and total household debt has topped $13 trillion in 2018 Q1, more than $500 billion higher than its previous peak in 2008.
A CLOSER LOOK
While consumer debt is similar in terms of total size from a decade ago, the composition has changed considerably.
Mortgage debt, which makes up the vast majority of consumer debt, is still actually down from its 2008 peak by 4%. Replacing that is other forms of debt, including student loans: