ANN ARBOR, Mich.— As the country emerges from the Great Recession, a substantial number of U.S. families are underwater—and not just with their mortgages.
According to a new University of Michigan report, about one out of every five U.S. households owe more on credit cards, medical bills, student loans and other noncollateralized debts than they have in savings and other liquid assets.
The report also predicts continuing trouble ahead for home mortgages, with 1.7 percent of families surveyed in 2011 saying that it is “very or somewhat likely” that they will fall behind on their mortgage payments in the near future. This represents an improvement from 2009, however, when 1.9 percent of families had such expectations. (more…)