<DOCUMENT>
<TYPE>EX-12
<SEQUENCE>4
<FILENAME>dex12.txt
<DESCRIPTION>COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
<TEXT>
<PAGE>

                                                                     Exhibit 12

                HOUSEHOLD INTERNATIONAL, INC. AND SUBSIDIARIES

             COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
            TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
                                  (RESTATED)


<TABLE>
<CAPTION>
                                                          Year ended December 31,
                                                --------------------------------------------
                                                  2001     2000     1999     1998     1997
-                                               -------- -------- -------- -------- --------
                                                (All dollar amounts are stated in millions)
<S>                                             <C>      <C>      <C>      <C>      <C>
Net income..................................... $1,847.6 $1,630.6 $1,428.3 $  481.8 $  908.9
Income taxes...................................    970.8    868.9    700.6    404.4    444.2
                                                -------- -------- -------- -------- --------
Income before income taxes.....................  2,818.4  2,499.5  2,128.9    886.2  1,353.1
                                                -------- -------- -------- -------- --------
Fixed charges:
   Interest expense (1)........................  4,196.7  3,943.8  2,782.2  2,530.8  2,367.9
   Interest portion of rentals (2).............     64.4     52.9     45.4     56.8     53.4
                                                -------- -------- -------- -------- --------
Total fixed charges............................  4,261.1  3,996.7  2,827.6  2,587.6  2,421.3
Total earnings as defined...................... $7,079.5 $6,496.2 $4,956.5 $3,473.8 $3,774.4
                                                ======== ======== ======== ======== ========
Ratio of earnings to fixed charges (3).........     1.66     1.63     1.75     1.34     1.56
                                                ======== ======== ======== ======== ========
Preferred stock dividends (4).................. $   23.6 $   14.1 $   13.8 $   23.0 $   25.3
                                                ======== ======== ======== ======== ========
Ratio of earnings to combined fixed charges and
  preferred stock dividends (3)................     1.65     1.62     1.74     1.33     1.54
                                                ======== ======== ======== ======== ========
</TABLE>
--------
(1) For financial statement purposes, interest expense includes income earned
    on temporary investment of excess funds, generally resulting from
    over-subscriptions of commercial paper.
(2) Represents one-third of rentals, which approximates the portion
    representing interest.
(3) The 1998 ratios have been negatively impacted by the one-time merger and
    integration related costs associated with our merger with Beneficial
    Corporation ("Beneficial"). Excluding Beneficial merger and integration
    related costs of $751 million after tax, our ratio of earnings to fixed
    charges was 1.73 percent and our ratio of earnings to combined fixed
    charges and preferred stock dividends was 1.71 percent.
(4) Preferred stock dividends are grossed up to their pre-tax equivalents.

</TEXT>
</DOCUMENT>