"Millions set for debt crisis if interest rates rise warn experts as figures show number of families that spend half their income on repayments could treble by 2018"

Link to Mail on Sunday

"The number of British families who spend more than half their disposable income on debt repayments could treble by 2018 if interest rates rise faster than predicted, a leading think tank has warned.

"Fearing that politicians are ignoring a looming crisis in household debt, think tank the Resolution Foundation has urged banks to start checking on debtors now, in case they are caught off guard when the cost of borrowing goes up.

"... Most of the UK's household debt is composed of mortgages, with the rest taken up by credit cards, personal lending and payday loans. Since household consumption accounts for about 65 per cent of GDP, any drop in disposable income could have a huge effect on recovery."