Soaring house prices, growing incomes and low interest rates mean debt is more affordable according to a new report.

In fact, the authors of the report dismiss claims that debt loevels for UK consumers are getting out of hand.

The report from the Centre for Economics and Business Research, commissioned by internet bank Egg, suggests the cost of servicing debt is well below the 'danger' levels seen in the early 1990's.

Asset rich

Today debt repayments swallow-up on average only 7% of income, compared to over 11% in 1990.

In addition, the report claims rising house prices mean homeowners are increasingly asset rich, therefore more able to cope with debt.

Since 1988 debt has increased on average by 112% but house prices have gone up by 141%.