The Resolution Foundation estimates that as many as two million households in the UK could be in "debt peril" come 2018.
The thinktank says that while it does not follow that all households in "debt peril" will default on their mortgages, those spending more than half of their income on debt repayments will find their financial position increasingly difficult to sustain.
Mortgage payers in "debt peril", which the thinktank said meant they spent more than half of their post-tax income on debt repayments, will increase from 600,000 to 1.1 million, it said.
Matthew Whittaker of the Resolution Foundation, a think-tank, calculates that the difference between a bank rate of 3% in 2018 and a rate of 5% is that 620,000 fewer households would be in "debt peril", defined as spending more than half their disposable income on debt payments.The prospect of rates remaining low for years should also improve companies' behaviour.
The Resolution Foundation thinktank warned that even the limited increases in interest rates envisaged by Carney in a speech in Lincoln Cathedral on Thursday would push 1 million households into "debt peril", with the higher cost of servicing debt offsetting the pick-up in wage growth seen in recent months.
While Graham preached the twin perils of debt and terrorism, he couldn't resist cracking wise.
The anti-debt campaigners seem to overlook this when they argue the perils of debt, not just in Australia but around the world.
"The Perils of Debt Complacency". Project Syndicate, 28, September 2016.
The Greek debt crisis exposed the perils of that strategy.
Scrutiny should now turn to private student loans, especially those that take advantage of young adults who are naïve about finance and the perils of debt.
We are a long way here from Hamilton's (unheeded) admonitions to his countrymen to avoid the perils of debt: The differences between America and Europe go beyond the political to their very nature.
