"If we look … at the debt that consumers have outside of their home mortgages -- so, for example, we are looking at credit card debt, debt from personal loans, auto loans -- we do see improvement if we measure the debt service payments (in other words, what you’re paying each month to carry that debt) as a percent of after tax income," says Dr. Walden.

"This percentage has actually been going down in the last couple of years. It was 6.7 percent in 2003. It’s now 6.1 percent," he says. "And I think the reason for the improvement is a combination of, number one, consumers being more frugal in their build up of debt as well as … getting some income gains in the last couple of years.

"I think what this trend indicates is you can find some good news on debt," Walden concludes, "and it also indicates consumers can be rational, and they can be careful."