The growth in household debt has outpaced growth in household incomes in recent years, putting questions about the causes and consequences of higher debt back in the spotlight.
Should we worry that higher debt means that another credit crisis could be brewing? Or is growing household debt instead an indicator of rising consumer confidence? What is the profile of debt across different households and who is most exposed to rises in interest rates? How sustainable is the UK’s level of household indebtedness?
At an event at its headquarters in Westminster, the Resolution Foundation presented findings from new research on shifts in household debt across Britain. A panel of experts, including MPC member Dr Gertjan Vlieghe, then offered their take on debt, from what it means for the macroeconomy to its impact on individuals and families.