http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B8E537F06%2D7BCB%2D439A%2DB139%2D0776DB0BD12E%7D&siteid=mktw&dist= Middle-income families felt squeezed more than most, devoting a median 20% of their income to debt payments in 2004 - even at a time of low interest rates -- up from 18% in 2001. U.S. households overall spent a median 18.3% of income on debt payments in 2004, up from 16.9% in 2001, according to the report, which is based largely on data from the Federal Reserve Board's Survey of Consumer Finances.
And more families entered the group of seriously indebted: 13.7% of households faced debt payments greater than 40% percent of their income in 2004, up from 12.8% in 2001.
Looking at households' overall debt load, Americans' debt rose to a median 108% of income in 2004, up from 78% of income in 2001, with middle-income people facing the steepest rise, to a median 114% of income from 80% in 2001, according to the report.
"The middle-class squeeze stagnant income growth in the face of very sharp price increases for big-ticket items such as homes and education," said Christian Weller, author of the report and a senior economist with the Center for American Progress.
Way Beyond - Morcheeba
Driving with your handbrake on
But you can't smell the burning
Colliding with oblivion
Just to keep heads turning
Man I want some pretty cash
It's ugly all that saving
'Cause we could get so fabulous
When we're out Rolex raving
No craving
Oh we're way beyond our means
To buy these crazy things
Oh we're wasting our whole lives
In a struggle to survive
Get yourself in debt for me
The Grass don't get no greener
Have it all so far upfront
It doesn't take a dreamer,
a beamer
Oh we're way beyond our means
We love these spending sprees
Oh we're wasting all our time
On some production line
Diving down the rubbish chute
We'll be OK if we uproot
'Cause I don't need no heavy
family
Holding me
Oh we're way beyond our means
To buy these crazy things
Oh we're making them Swiss
Francs
To burst there private banks
Oh we're way beyond our means
We love these spending sprees
Oh we're wasting our whole lives
In a struggle to survive