The number of Irish people in debt and the average amount borrowed has increased significantly in the last 12 months, according to a new survey by the ESRI and IIB Bank.
The survey - which reinforces growing concern about the increasing level of personal debt - found that one in three people are regularly in debt, with non-mortgage personal loans such as credit card debt.
It found that in general terms more borrowers "appear comfortable with higher levels of debt" - which it says reflects larger incomes and persistently low interest rates.
But the survey found that borrowers with incomes of €25,000 or less and between in the 40-49 age group were under "greater strain because of their current debt burden".
This may reflect that income growth has not been as strong as expected for these groups, the survey says. "It also indicates that in era of low inflation the real burden of debt is not as quickly eroded as in the past," it said.
The report said that for 78 per cent of those surveyed the burden of debt has not changed in the last year.
But 15 per cent of people said their debt burden had increased. The main causes were changes in income, childcare costs, other household costs and increases in loan repayments.
The report concludes that the bulk of borrowing was to finance lifestyle. It also said that it appeared the Government SSIA schemes had not hugely influenced borrowing levels.
