In the United States, household debt is often examined in relation to household spending, with minimal consideration for how other factors contribute to the likelihood of individuals incurring debt over their lifetime. Through an OLS regression analysis of cross-sectional data from the Panel Study of Income Dynamics (PSID) for the years 1989 and 2009, this research examines how socioeconomic factors impact household debt. The independent variables used in this research are the number of children in a household, age, marital status, race, sex, education, training experience outside of college, change in family composition, mobility, region, reported parental economic status, and religious affiliation. Regression results indicate that the independent variables marital status, race, education, training experience, change in family composition, region, and parental economic status are statistically significant in determining the likelihood that an individual will sustain some level of debt during their lifetime. This research recommends policies to reduce the likelihood of household debt accumulation, with the broader purpose of promoting economic equity. The study will contribute to the fight against economic discrimination and isolation based on cultural and socioeconomic markers.
