This study aims to investigate the link between household debt and GDP. By utilising the Toda-Yamamoto non-casuality test, findings of this study reveal that there is a unidirectional causality that runs from the household debt to GDP which is consistent with the findings based on composition of debt. A Johansen cointegration test was also conducted and results confirmed that long run relationship exists with one cointegrating equation found for each model. Findings from this study can be useful for policymakers working on making Malaysia a high-income country by 2020.