Household debt has fallen to its lowest level in almost seven years, according to figures from the Central Bank.

Debt levels fell €1.7 billion in the second quarter of 2013 to €170.3 billion, according to the authority’s latest quarterly financial accounts, putting it at its lowest level since the second half of 2006.

Household debt sustainability also improved over the quarter, with debt as a proportion of disposable income falling to its lowest level since the start of 2007.

Household net worth also improved to stand at €471.6 billion, largely due to a rise in the value of property assets.

Meanwhile, non-financial corporation debt fell €10 billion to €357 billion during the quarter, putting at its lowest level since the end of 2010.

The Central Bank said that Irish non-financial corporations continued to be the second most indebted in the European Union, behind those in Luxembourg.

However the authority said it was important to note the high level of multinational activity in both countries when comparing these figures internationally.