Same thing happened to me, and I let it go for too long also.
As the bearings failed, the basket started to "sag", and then the
wheel that
the belt turns also started rubbing on the basket. Eventually the
wheel
cut into the back of the basket a bit. ( was able to patch that )
My plastic shavings came from the front of the basket area - but after
I cleaned it up the plastic pieces stopped forming and all seemed to
be ok.
Unfortunately for me, when my bearings had failed, and we ran it
for longer, the broken bearings wore into the shaft, and we couldn't
get a new shaft without buying a whole shaft/spider/basket.
Lucky for me, about the time I got it all back together, my wife
decided
she wanted a top loader and we transitioned away from our front
loader.
Well, let's just say this was a "learning experience" for me.
I was glad to find the videos online - and replace the bearings.
Next time - we will stop using the washer at the first sound of
abnormal noise.
David