Irish households still carry high debts

Only households in Denmark and Netherlands continue to carry heavier debt burdens than those in Ireland, despite falls in indebtedness here, Central Bank figures published yesterday showed as the economic recovery picks up pace.

The country’s households between them owed €154.6bn — equivalent to a debt of €33,530 for every one in the State —in the first three months of the year.

That figure is, however, down by €3.7bn, marking the largest quarterly reduction since the height of the financial crisis in 2010 and is being largely driven by so-called deleveraging, where households continue to pay off debt without taking on more liabilities such as housing loans.