With the British economy returning to health, the temptation of consumers to spend themselves into debt could again bring down the economy.
Household debt had rocketed to 170% of disposable income before the crisis. Although it receded during the years of the recession, the drop was small.
Now it is reported to be again on the rise.
The Office for Budget Responsibility forecasts that the ratio will be back at close to peak levels within five years.
Although its housing prices are riding high again and causing greater mortgage debt, Britain is not alone.
In Sweden, gross household debt to income is 170%, in Norway it is 180%, in Ireland 198%, in the Netherlands 250% and in Denmark, an astonishing 265%.
The economy needs growth from consumer spending at the same time as it also needs to rely on its citizens to save money, despite the historically low interest rates. Indications are that British consumers are spending readily again.
But if and when there are knocks to the economy, consumer spending shuts down quickly, putting more pressure on the economy. High debt also makes it difficult for the interest rates to go up as this, too, would strangle consumption.
