So the Fed doesn't want to go hog-wild printing dollars to pay US debts, especially given its domestic inflation fears. They fear that the dollar will lose its exalted status, to replaced by the Euro or the Yen or some complicated situation that's hard to understand. The flow of credit into the US has helped finance the rise in consumer credit, as did the US government's surplus. Real disposable incomes cannot keep pace. In other words, Americans are living beyond their means.
Bankruptcy is up.
This is debt to pay for stock purchases, using the stock itself as collateral. Margin debt is one of the reasons why the US economy was hurt by the stock market crash of 1929. This sudden fall in consumption is likely to make the recession severe. Outstanding debt makes it hard for the Fed to use low interest rates to stimulate the consumers to spend. It hurts the housing industry, since a major source of demand for construction is consumers.