ne reason the Great Recession was, alas, great was the quantity of household debt accumulated in the lead-up to the financial crisis. This debt helped fueled a massive housing bubble, the collapse of which wiped out trillions of dollars of household wealth, put millions of borrowers into default and triggered an economy-crippling credit crunch. Hence, over the past decade, the question of how to help households better manage their use of debt has been front and center in the effort to shield the economy from another leverage-fueled implosion.
Dynan, Karen. "Household Debt." Milken Institute Review. April 27, 2018.