It does by no means follow that the current level of household debt must lead to any dramatic changes.

A high household debt implies that there's relatively less money left over for domestic consumption, compared to similar countries with less debt. Low domestic consumption is a drag on employment. That means that new jobs must come from the export sector, but with the current worldwide stagnation, that does not look hopeful.

I fear another decade of very slow growth, not a sudden collapse: unemployment is stable, mortgage requirements have been fairly strict, so people who can pay their mortgage this month, can pay it the next.