Interest rate rise would hit millions in UK who depend on cheap credit

Almost half of low-income families are believed to be in debt distress already

The Bank of England's warning that it plans to raise interest rates from as early as May will hit millions of low-income families who have only survived financially for a decade by using cheap credit.

The Resolution Foundation said almost half of low-income families were in debt distress before Threadneedle Street said last week that it needed to increase the base rate at an accelerated pace over the next two years.