Apparently Americans are cutting down on everything in the current recession. According to an article by Justin Lahart in the Wall Street Journal:

The Federal Reserve Bank of New York’s quarterly report on debt and credit [indicated that] U.S. households had $11.42 trillion in debt outstanding in the second quarter. That was down from a peak of $12.5 trillion in the third quarter of 2008, when the financial crisis took hold, and the lowest since the first quarter of 2007. Mortgage debt, home equity loans, credit card debt and auto loans are all down sharply.

Well almost everything. According to the same article “there was $550 billion in student debt outstanding in the second quarter, up 25% from $440 billion in the third quarter of 2008.”

Education debt is still debt, remember?

Daniel Luzer

Daniel Luzer is the news editor at Governing Magazine and former web editor of the Washington Monthly. Find him on Twitter: @Daniel_Luzer