Wednesday, December 8, 2010

$48 billion in debt reduction

Image ID 377234 by Stock Exchange user ede design

It seems like everyday we’re faced with mainstream media stories about how massive the foreclosure crisis has been. I don’t know about y’all, but I usually have a hard time getting a mental picture of how much money we’re actually talking about.

This morning I stumbled on an article with an easy-to-understand number and it’s ginormous.

CreditBloggers reports (via Northern Trust) that since the first quarter of 2008, Americans homeowners have shed $48 billion in mortgage debt, and $157 billion in credit card debt.

What’s unclear is whether Northern Trust tried to (or indeed if anyone is able to) drill down into their numbers to see how much debt was paid off versus how much was defaulted on.

Either way, that number is pretty staggering. Holy cow!

Image credit: StockExchange user ede design