What happens to a nation when its private credit debt increases to 147 percent of the country's GDP? Or when the credit card debt reaches a record $37.3 billion, rising at more than $4 billion per year?

Economists are forecasting a recession. And why wouldn't they? Rising fuel costs, interest rate hikes, and another record Christmas spending season are all set to make it harder for families to cope financially in the new year.

In fact, we could see new records being reached this year albeit in personal bankruptcies.

In Peter Switzer's report he lays claim that;

The ratio of household debt to liquid assets rose to a record high of 125.5 per cent in the September quarter.

Because debt levels are so high families will either take the easy way out and file for bankruptcy or they may try to pay their way out and therefore reduce their spending levels.

Either way, it forces a recession...Happy New Year!