Closer to the edge? Debt repayments in 2018 under different household income and borrowing cost scenarios

Britain faces the mounting prospect of a household debt crisis as analysis from the Resolution Foundation suggests that a least a million British families, and possibly as many as 2 million, could be spending more than half their disposable income on repayments by 2018

The study uses the latest five-year growth projections from the Office for Budget Responsibility to model how the number of households in ‘debt peril’ may rise over the same horizon – depending on the path of interest rates and the shape of growth in household incomes.