HOUSEHOLD debt is set to explode in the next 10 years with devastating consequences, financial analysts have warned.

Britain's debt mountain will rise from £1 trillion to £1.6 trillion over the next decade, according to a report from the Skipton Building Society.

Consequences will be far reaching - pushing up the retirement age and possibly forcing some couples with heavy debts to rule out having children for financial reasons.

"Over the decades, we've shifted from a culture of thrift to a culture of spend and now a culture of debt, where our incomes cannot keep up with our lifestyles," said Skipton's head of media relations Jennifer Holloway.

But for some the burden of debt may become so acute that they feel the desire to radically change their lifestyle, the analysts predict.

They would trade down on house size, location and mortgage costs in order to opt for a simpler, more cost-effective lifestyle.

"As a result, we predict a future shift to a 'savings renaissance', where people once again save up to buy what they need, rather than borrow to buy, and re-evaluate the cost of what they desire in order to make lifestyle choices that fit with their finances," said Ms Holloway.

First published: October 28