UK reliance on loans and credit cards puts recovery at risk, IMF warns

Rise in household debt lands UK on IMF financial stability report's warning list of countries vulnerable to a credit crunch similar to the one that triggered 2008 banking crisis

Britain's reliance on households using loans and credit cards to spur economic growth has put the gradual recovery of the past five years in jeopardy, the International Monetary Fund has warned.

A rise in household debt to one of the highest in the developed world puts the UK on a warning list of countries vulnerable to a credit crunch similar to the one that triggered the 2008 banking crash.