Thinktank warns of overwhelming household debt

 

Whilst household debt levels have improved on aggregate over the past decade, the Resolution Foundation has warned in its latest research, that the poorest fifth of homes are carrying a debt burden that threatens to overwhelm them.

Resolution described the group as potentially vulnerable and said that they had been left “far too exposed” to financial shocks.

Over the past decade there has been a ten percentage point rise in the proportion of lower-income households using some form of consumer credit excluding student loans.

“This, combined with a 15 percentage point rise in the share of low-to-middle households who have no savings, leaves them far too exposed to financial shocks,” the thinktank said.