British household debts are rising to worrying levels at a time of economic uncertainty, analysts at Moody’s have cautioned, in the latest warning on the size of the UK's ballooning consumer credit market.

The poorest families in the country are the most exposed to the risks as living costs rise more quickly than income, leaving such households less able to cope with any financial shocks, the ratings agency cautioned.

“Household debt is high and still growing, leaving consumers vulnerable to an economic downturn,” explained Moody’s Greg Davies.

“Higher inflation, weaker wage growth and levels of indebtedness leaves those in lower-income brackets the most exposed.”