Debt crisis 'looms for two million', says think tank

Politicians are ignoring a looming crisis in household debt which could see two million families driven to "the edge of their means", a leading think tank has warned.

Debt crisis 'looms for two million' Credit: Owen Humphreys/PA Wire

The Resolution Foundation said the number of British households spending more than half their disposable income on debt repayments could triple by 2018 if interest rates rise faster than predicted.

It urged banks to start checking on debtors now, in case they are caught off-guard when the cost of borrowing goes up.

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