Analyses focus on current issues of particular relevance to Danmarks Nationalbank’s objectives. The analyses may also contain Danmarks Nationalbank’s recommendations. They include our projections for the Danish economy and our assessment of financial stability. Analyses are targeted at people with a broad interest in economic and financial matters.
What's the story behind Danish households' rising debt?
Over the past four decades, debt has increased significantly faster than incomes and accounts for approx. 260 per cent of the disposable income of Danish households in 2020. This analysis presents a measure of household structural credit and reviews the economic factors that have contributed to this development. Besides higher incomes, greater wealth and lower borrowing costs have led to increasing debt over a long period of time. Both lower interest rates and regulatory easing have contributed to this development.