During the second quarter of 2019, the debt-to-income ratio for Wisconsin was the same as the second quarter of 2020.
The median household debt-to-income ratio in Wisconsin during the second quarter of 2020 stood at 1.24 to 1.33, which is below the national average of 1.51, the Federal Reserve System reported recently.
In the Fed data, household debt numbers come from both Equifax and the Federal Reserve Bank of New York’s Consumer Credit Panel. The estimates of household income come from the U.S. Bureau of Labor Statistics.
The Fed sees such state household debt-to-income ratios as key to explaining the sluggish economic recovery in many regions in the wake of the Great Recession more than a decade ago. States or counties with high household debt relative to income endured drops in consumer spending and employment as the recession unfolded, the Fed reported.
A household’s debt-to-income ratio is defined as monthly debt payments divided by gross monthly income.
|State||Debt-to-Income Ratio Low (Q2 2020)||Debt-to-Income Ratio High (Q2 2020)||Debt-to-Income Ratio Low (Q2 2019)||Debt-to-Income Ratio High (Q2 2019)|
|District of Columbia||0.39||1.09||0.39||1.09|