In such a case, the real value of creditors’ assets would increase, but, since debtors’ propensity to consume out of income is generally higher than creditors’, consumption in the overall economy would shrink. Therefore, attention should be paid to the fact that there are costs unique to deflation. III.
Graph 7  Distribution of Household Debt* By income quintile, 2019/20 %  Share of total debt owed  ratio  Median debt-to-income  45  1.5  30  1.0  15  0.5  0  1  2  3  4  5  1  2  3  4  5  0.0  Income quintile *  Only includes households with debt.