At the aggregate level, one can evaluate debt burdens in two ways. One measure is the debt service ratio. The numerator of this ratio is the minimum payment required on mortgage and consumer debt - for example, car loans, student loans, and credit card debt - and the denominator is after-tax income.
The debt service ratio captures such things as the effects of changes in interest rates, loan maturities, and loan demand on the debt obligations of households. A somewhat broader measure - and one that the Federal Reserve has only recently introduced - is the financial obligations ratio. This measure adds required payments on rent, auto leases, homeowners’ insurance, and property taxes to debt service.