Household's rate of indebtedness means the ratio of debts to household's disposable income.
Disposable income is arrived at when current transfers paid are deducted from gross income. The household's current transfers paid are mainly formed of direct taxes and social security contributions. In addition, current transfers paid include compulsory pension and unemployment insurance premiums and child maintenance support paid.
A household is formed of all those persons who live together and have meals together or otherwise use their income together.