In addition, household debt levels have contracted notably: Mortgage debt and consumer debt have declined 7 percent and 5 percent, respectively, since mid-2008. This decline partly reflects the weakness in the economy: Tight underwriting standards have damped new loan  1  Pence, Karen M. 2011. “Comment on ‘Financially Fragile Households: Evidence and Implications.’ ” Brookings Papers on Economic Activity.
Spring: 141–145  BIS central bankers’ speeches  1  originations, and a sizeable amount of debt has been discharged through bankruptcies or foreclosures. But households also appear to have a greater aversion to debt than in the past, and a renewed interest in paying down debt more aggressively.