Household debt in the UK is set to explode in the next ten years with devastating consequences, financial analysts have warned.

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

The impact will be far-reaching. It will push up the retirement age and even force some couples - especially those with heavy debts - to rule out having children for financial reasons.

The report, Financing Your Future, concluded that debt would increase from 139 per cent of household income in 2004 to 150 per cent within ten years.

Jennifer Holloway, head of media relations at Skipton Building Society said: "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."

As a result, analysts also predict a radical shift in attitudes driven primarily by pension underfunding.

People will use additional income like bonuses, windfalls or inheritance to boost savings rather than spending on consumer goods and services.

For some the burden of debt may become so acute that they feel the desire to radically change their lifestyle.

People will trade down on house size, location and mortgage costs and opt for a simpler life.

Over-reliance on borrowing and credit are key factors in the next decade's debt accumulation, with higher interest rates, unemployment and lower house prices all underlying threats to household income, the report stated.

Ms Holloway added: "We predict a future shift to a 'savings renaissance' where people once again save up to buy what they need and re-evaluate the cost of what they desire in order to make lifestyle choices that fit with their finances.

"What is clear is that there will need to be a period of savings catch-up to counter the debt explosion."