Rate rise 'will hit family income'

Press Association
Credit cards cut up
Credit cards cut up

More than 800,000 families will be forced to spend half of their income on debt repayments by 2017 if interest rates rise by current predictions and household income is squeezed, according to new research.

The study, published by the Resolution Foundation think-tank, analysed the effects on families if interest rates rise by the expected 1.9% in four years, but also considered the "adverse but plausible" scenario that they could increase by a further 2% by 2017.