The household debt-to-income ratio has stabilised over the past year and was 140% in Q2 2018, down from a high of 160% in Q1 2008. Almost three quarters of household debt is secured against housing. Unsecured debt as a share of household income is now 35% (Q2 2018), down from its peak of 41% before the financial crisis (Q1 2007).
Although the level of consumer credit remains high, when adjusted for inflation, the level of outstanding consumer credit stands 17.7% below its January 2008 peak.
The Budget 2018 announced new policies to help households manage unexpected costs by increasing access to fair and affordable credit, as well as a consultation on a breathing space scheme for people who fall into problem debt.