Slide 5:

The title of this slide is "Financial Obligations." The line-graph chart on this slide is entitled "Financial Obligation Ratios." To the right of the chart are two bullet points: (1) While homeowner obligations have remained fairly constant relative to income since 1986, renters' obligations have risen sharply with a small recent retreat; and (2) More renters are low income.

The chart shows the ratio of financial obligations to disposable personal income from 1980 to 1994. There are two lines: one is the renters' financial obligations ratio (FOR), and the other is the homeowners' FOR. For renters, the FOR was approximately 24 percent in 1980; it rose to approximately 26 percent in 1987 before dropping to approximately 24 percent in 1992. The renters' ratio then rose steadily to peak at about 32 percent in 2002 before retreating to about 30 percent in 2004. For homeowners, the FOR was approximately 14 percent in 1980; it rose very slightly to about 16 percent in 1987, and has stayed at this level through 2004. The source of the chart is the Federal Reserve.

The source of the slide is Cambridge Consumer Credit Index.