Consumers Fall Further Behind

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.