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Eight Millions Homeowners Are Drowning
Consumers Fall Further Behind owing
$800 Billions usatoday.com — Americans' household finances are bad and getting worse, and that
spells trouble for the economy for the rest of the decade, according to a study
by Moody's economy.com.
Consumers are behind schedule in payments or have walked away from nearly $800
billion in household debt of all kinds — like mortgages, credit cards, and car
loans. As prices decline, fewer homeowners can borrow against their home
equity. More borrowers also owe more than their homes are worth. More than 8
million homeowners are underwater now, and Moody's forecasts that number will
rise to about 12 million in 2009.