Debt owed by households is high relative to their income, and so too are the payments required by that debt and by other regular obligations. But the vast majority of households are not encountering problems meeting obligations, and they have protected themselves to a considerable extent against increasing interest rates by borrowing for longer terms at fixed rates.
As a consequence, debt servicing obligations will rise very gradually even if market interest rates increase rapidly. Moreover, any increase in rates would most probably occur in circumstances in which income and employment were also rising briskly, and thus adding to the resources available to consumers. And, while debt has been increasing, assets on household balance sheets have been rising even more rapidly.