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Household debt and Covid: Quarterly Bulletin - 2021 Q2
ovid-19 (Covid) has had an unprecedented impact on the UK economy. In the past, economic shocks have been amplified by household debt, as more highly indebted households cut back sharply on their spending or defaulted on their debts. There is little evidence that – so far at least – household debt has amplified the Covid recession. This is likely to reflect the particular nature of the crisis and the unprecedented policy interventions – such as income support and payment deferrals – which have supported household finances. Some households, particularly those with unsecured debt, have reported being in ... (full story)