Banks forgiving more debt than consumers cut

Household debt has fallen from more than $12 trillion nationwide to figures ranging around $11.5 trillion. But considerably more than half of the $1.1 trillion drop in consumer debt has been the result of banks striking bad accounts from their records, according to a report from Time Magazine. In all, $695 billion of that $1.1 trillion has come from debt being written off, with the remaining $375 billion being the result of more conscientious bill payments by consumers.

In all, about $8.5 trillion of the nation's outstanding household debt is tied up in home loans, while credit card debt, totaling $730 billion, makes up the next-largest credit type, the report said. Auto loans followed at $710 billion.

Many consumers have tried to be responsible in paying back their outstanding debts in recent months, but money problems may have been exacerbated by ongoing unemployment that led to defaulting on loans.