A recent research carried out by the Treasury has asserted that debt is not as serious and huge a problem among households as is sometimes estimated and portrayed.

After an extensive study by 2 analysts of, what they call has been an "appreciable rise in the total debt of the household sector, which had sparked concerns", this conclusion was reached at. Specifically, the study looked at households which currently had over 30% of their gross income going towards debt servicing, and who had more liabilities than assets.

As per the study figures, only about 1% of the couples, or nearly 8000 households were at risk, but the number was only 2000 more when compared to the figures for 2003.

In conclusion, the Treasury has announced that it does not feel that the overall state of "household balance sheets" is a cause for any concern.

"Household liabilities have grown rapidly over this period, largely as a result of borrowing for housing. But assets have also increased because house prices have risen", said the report.