The level of personal debt relative to average disposable income has more than doubled over the past ten years, according to the Central Bank.
In its spring bulletin, the Bank says much of this debt is exposed to variable interest rates.
It warned that if rates were to rise, the cost of borrowing here could have a detrimental impact on the economy.
In its spring bulletin the Central Bank has published a special study on the growth of private sector credit in Ireland over the past ten years, and how we compare with the rest of Europe.
The report finds that household debt, most of which is mortgage debt, has been growing at three times the euro zone average rate since 1999.
The Central Bank is not overly concerned at this accumulation of debt so far, as it still places us only in an average position compared with other euro zone countries.
But the bank warns that this rate of credit growth cannot continue, and more worryingly, it points out that a large proportion of household debt is linked to variable interest rates.
If rates were to rise, the bank warns that it could have a bigger impact on the economy here and in other euro zone countries.
The bank's report also contains data which show that the overall price level of houses in Ireland is greater than in any other EU country, with higher prices to be found only in London.
The bank again expressed the hope that house price increases would moderate.
Meanwhile the financial regulator, IFSRA, is currently working with banks and other lending institutions to compile a code on mortgage lending.
