SCOPING OUT THE DEBT PROBLEM

The Wall Street Journal reports today that there is more to the debt problem than out-of-control Federal Government spending.
During the 1990s, Household debt was 84% of annual income.
In 2007, height of the boom, the Household debt was 127% of annual income.
Today, the Household debt is 112% of annual income mainly because of bank writeoff of bad debt.
It would require households to pay off $3.3 Trillion to get back to the 1990s 84% level.
First off, where and what kind of money was used to enable household debt?
How will households ever payoff oustanding debt when real wages keep declining and most need to borrow just to keep heads above water?
How does the household debt relate to the federal debt limit debate?
There are so many questions, so little time.