According to figures released by the Bank of Spain, the financial debt of Spanish households hit a record high last year of €595.18 billion. Booming property prices has been blamed, with far more Spaniards being required to take out bigger mortgages.

Interest rates are current at bargain-basement levels and there is now a fear that they may rise.
Consequently the Bank of Spain and the IMF warn of the dangers to both the real economy and the financial system should interest rates rise sharply or indeed house prices fall considerably.