Sharp rise in UK consumer debt among less well-off, thinktank warns

Resolution Foundation says increasing reliance on credit cards and overdrafts is storing up problems

Low-income households have recorded a sharp rise in the use of potentially expensive consumer debt over the past decade and are now vulnerable to unexpected hard times, a thinktank has said.

While the Resolution Foundation dismissed fears of a debt crisis as overblown, it said the increasing use of credit cards, store cards and overdrafts by those struggling to make ends meet should concern policymakers.