Compared with other countries, Danish households have a very high debt-toincome ratio. Internationally, this has attracted considerable negative attention. The wealth and debt of Danish families are analysed in more detail in Part 2 of this Monetary Review. 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.