SINCE 2010 the British economy has grown by some 10% in real terms, faster than the rich-world average. Most economists reckon growth will stay strong in 2016. But is this all built on the shaky foundations of ever-rising debt? Recent data from the Bank of England found that outstanding household debt—including mortgages and credit-card lending—hit a record £1.5 trillion ($2.2 trillion) in November. Lending to households increased by 3.2% over a year earlier, the largest rise since late 2008. Some commentators fret that, as so often before, a debt-fuelled binge could come to a jarring halt. But dig deeper, and things seem more reassuring.

What counts for sustainability is the debt stock relative to the incomes out of which repayments are made. After this adjustment the picture looks rosier (see chart). Britons’ household debt as a percentage of income peaked at 160% just before the 2008 crash, when average inflation-adjusted debt was roughly £64,000 per household. By 2014 that figure had tumbled to about 130%. Only in recent months has the household-debt ratio started inching up again.

Borrowing may now be rising again, but those taking on new debt also seem to be the most able to repay it. The number of households struggling to service debt is falling, according to another report from the Bank of England. In 2008, 13% of Britons spent a hefty 30% or more of their pre-tax incomes on mortgage and unsecured debt repayments; now only 10% do. Other measures of financial distress—eg, how many people say they have difficulty paying their rent or mortgage—have also improved in recent years.

Britons’ balance-sheets are looking healthier for several reasons. Worries about the economy may have encouraged some people to pay down debt rather than take out new loans, says Ruth Miller of Capital Economics, a consultancy. Interest rates have fallen to historical lows. Strict rules that came into force in 2014 have curbed excessive mortgage lending; for the country as a whole, house prices are still below their pre-crisis peak. Growth of mortgage debt has also been restrained, as banks increasingly insist on repayment mortgages, not interest-only ones, says Michael Saunders of Citi, a bank. In 2015 just 1% of new mortgages were interest-only, down from a third in 2007. And Britain’s recovery has been job-rich; unemployment is down to 5.2%, so fewer households are likely to find themselves suddenly unable to service their debts.

Some borrowers would still be vulnerable in the (unlikely) event that interest rates rise suddenly. However, even then a financial crisis would not be inevitable, argues Simon Wren-Lewis of Oxford University. In 2007-08 British banks did not get into difficulties because of lending too much at home. Ben Broadbent of the Bank of England has estimated that British-owned banks lost 15 times as much on foreign mortgages as they did in the domestic market. The story seems similar now: the bank’s stress tests, which simulate a fall in house prices of 20%, suggest that the financial system would cope.

It remains unsustainable for household debt to rise relative to incomes indefinitely. At some point, people will have to cut spending to pay it back. But for the time being rising debt may not be a bad thing, says Tony Yates of Birmingham University. It suggests that the banks have recovered (lending to small and medium-sized enterprises is looking perky as well). And with exports struggling, the government still cutting public spending and monetary policy already ultra-loose, he says, the last thing anyone needs is for consumers to embrace austerity as well. The British economy may be somewhat unbalanced, but at least it is growing.