Updated data through November shows total household debt service up another 7% y/y with incomes up just 4%, meaning a further draw on savings to keep up with rising liabilities. These lines represent the balance between monthly household debt service costs (mortgage + other debts) vs their savings allocation. The lines for 2023, 2024, and 2025 rising vertically while holding steady on the X-axis means increased personal debt service costs and no additional flows into savings. FRED also shows Personal Income up +$698B while Personal Outlays (which add debt service and consumption together) are up +$921B in 2025 through November. That delta has to come from somewhere (savings). What this all means is that any marginal new dollars earned by increased wages are being eaten up by outlays (debt service, consumption, insurance, etc), and NOT being saved. This pulls down the savings rate which is now near all time lows, bested only by 2005-07 and summer 2022. Without a new strong impulse in labor demand (because job switching is the strongest source of wage growth) or some additional stimulative policy from Washington, households will face the laws of physics and hit a wall.(𝐓𝐗𝐌𝐂)