The Wealth and Debt of Danish Families - Part 2
Monetary review, 2nd Quarter 2012
Compared with other countries, Danish households have a very high debt-toincome
ratio. Internationally, this has attracted considerable negative attention.
In this article, on the basis of register data at family level we look into the
composition of gross debt for families in different income and age groups and
the degree to which the debt is offset by various types of assets. The results show
that Danish families are frequent users of the financial system, since gross debt is
generally offset by even larger assets. The balance between gross debt and assets
can be explained especially in terms of family income, age, house prices and the
structure of the pension system. Given the current economic outlook, the extent
of the actually indebted families cannot be assumed to pose a threat to the
household or the financial sector.