Data from the Federal Reserve show the household financial obligations ratio, minimum debt service payments plus other financial obligation payments as a share of disposable income, plunged to an all-time low of 13.64% in the second quarter. Within that measure, the total debt service ratio, minimum debt services payments as a share of disposable income, dropped to 8.69% with mortgage debt service coming in at 3.72% and other consumer debt service requiring 4.97%.

However, disposable personal income for the second quarter was significantly distorted by the massive government transfer paymen...