The U.S. economy appears set to enter 2018 with good momentum and solid fundamentals. Unemployment recently reached a 17-year low, while consumer confidence is at a 17-year high. Small business optimism also recently attained its highest level since 1986. Often when economic sentiment levels reach such highs, consumer and corporate debts are also rising. That is not necessarily the case this time. The dollar level of debt in many categories may be at an all-time high, but so is income, the level of economic activity, and population. Consumer debts in comparison to consumer income are quite manageable and delinquency rates, though rising a bit, remain well below historical norms.