Fed Survey Says U.S. Family Debt Soared Between 2001 and 2004

By Andrea Hopkins, Reuters

Average U.S. family income fell for the first time in 12 years and net worth barely budged between 2001 and 2004, the Federal Reserve said on Thursday in a surprisingly bleak report on household balance sheets.

While soaring home values added to family wealth in the three years to 2004, Americans also took on far more debt and shed stock market holdings, leaving the average household just 6.3 percent richer than in 2001 after adjusting for inflation, the report showed.

The growth in net worth was the smallest three-year gain since 1992 and suggests the 28.1 percent rise in the average home value since 2001 was largely eaten away by a drop in the value of other assets and a 33.9 percent surge in family debt.

For this complete story, please visit US families made less in 2001-04, Fed survey says.