Measures

• There are two modes of figuring the ratio of consumer debt to income. The first is a limited measure, the household debt service ratio, or DSR, which deals only with mortgages and credit card debt. The more complete measure is the financial obligations ratio, or FOR, which deals with all forms of debt without exception, including rents and insurance as well as student and auto loans. The more accurate measure of the health of the average American household is represented by the FOR. The Federal Reserve maintains both DSR and FOR ratios for those who hold mortgages as well as those who rent their primary homes. These measures are different because those who rent are usually far less solvent than mortgage holders.
  
  

The 1980s

• In the 1980s, this distinction between renters and mortgage holders was fairly small. The average ratio for renters in 1980 was 13, while it was 14 for owners. By 1987, this distinction had become important, with to 27 for renters compared with 15 to 16 for owners.
  
  

From 1992 to 2000

• The spread between renters and owners continued to increase in the late 1980s and the 1990s. By 1992, if you rented your primary home, you were likely to be totally insolvent. In 1992, the debt of the renter was 23 times the amount of his income. For those who held mortgages, the FOR had stayed steady at 15, and this continued to remain steady from this point on. In fact, the basic FOR for homeowners has remained at roughly 15 from 1980 to 2011.
  
  

The 2000s

• In 2000, the renter's debt had reached 30 times their income in the FOR scale. Its highest level was 30.97 in the third quarter of 2002. This had fallen a bit by the end of 2010, the last quarter of which there is reported information as of April of 2011. The renter's FOR was 23.88 at the end of 2010. By any measure, this is total insolvency.
  
  

Consumer Debt

• For those with mortgages, consumer debt has stayed at roughly 60 percent of their total debt. According to Federal Reserve Statistics, those who own their homes -- that is, who have mortgages -- consumer debt alone was about 6 times their income in 1980, remaining steady at 6 in 1987, but just below 5 in 1992. That has risen to 5 at the end of 2010. While renter's debt has skyrocketed, those with mortgages, or who own their homes outright, has remained high but steady.