In the fourth quarter of 2012 the average "debt-service ratio" for American households fell to its lowest level since records began in 1980.

That is, households were spending less of their disposable income on paying interest on mortgages, consumer loans and other types of credit than at any point in the past three decades.

During the boom years, Americans borrowed and binged.

People have been paying down unmanageable old debts and taking out fewer and smaller ew loans.

The hangover has been long and throbbing, but after five years of water and aspirin, household finances are looking healthier.

New figures released by the Federal Reserve show a small rise in the first quarter of 2013, but the household debt-service burden appears to have bottomed out.

Rising house prices have also helped homeowners, at least recently.

CoreLogic, a research firm, reports that 1.7m households have escaped negative equity over the past year, the value of their home now exceeds their mortgage debt.

Remarkably, household net worth, at $70.3 trillion, has hit an all time high (though relative to the overall economy it remains below levels in previous booms). Thank you.