Household Debt to Income Ratio

Get the Household Debt to Disposable Income Ratio for a variety of countries over time from the OECD’s Household Dashboard. This expresses total household gross debt (loans and debt securities) as a share of household gross disposable income, returned as a decimal ratio (1.0014 means debt equals 100.14% of income).

It is a standard household-leverage indicator used in financial-stability analysis: a high or rapidly rising ratio signals households are more exposed to income shocks or interest rate increases (debt-servicing costs rise directly with rates on variable-rate or refinanced debt), and has historically preceded credit-cycle downturns (e.g. in the lead-up to the 2008 financial crisis). It is the household- sector analogue to government debt (see get_government_debt_to_gdp_ratio) - the two together give a fuller picture of an economy’s overall leverage.

See definition: https://data-explorer.oecd.org/vis?df[ds]=dsDisseminateFinalDMZ&df[id]=DSD_HHDASH%40DF_HHDASH_INDIC

Also known as: household leverage ratio, debt-to-income ratio.

Household Debt to Income Ratio in Python

Install the Finance Toolkit with:

pip install financetoolkit -U

Then call get_household_debt_to_income_ratio as shown below.

from financetoolkit import Economics

economics = Economics(start_date='2015-01-01', end_date='2022-12-31')

economics.get_household_debt_to_income_ratio(
    countries=['United States', 'Australia'],
    quarterly=False)

Which returns:

Parameters

The function accepts the following parameters:

• countries (list[str] | str | None, optional): The countries to include in the data. Defaults to None.
• quarterly (bool | None, optional): Whether to return the quarterly data or the annual data.
• rolling (int, optional): The rolling window size to use for smoothing the data (simple moving average). Defaults to None.
• trailing (int, optional): The trailing window size to use for summing the data over trailing periods (e.g. a trailing-4-quarter sum). Defaults to None.
• growth (bool, optional): Whether to return the growth data or the actual data.
• lag (int, optional): The number of periods to lag the data by.
• standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
• rounding (int | None, optional): The number of decimals to round the results to. Defaults to None.

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