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Getting a proper measure of the burden of household debt

On the face of it, households are having an easy time servicing their record levels of debt. Interest payments as a percentage of their income (income gearing) are just 7.1%, less than half the 1990 peak of 15%. But with interest rates, until recently, at a 48 year low, this is hardly surprising. A rather more worrying picture emerges when the amount households spend on repaying debt is included.

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