Irish household debt fell to its lowest level since 2006 between during the second quarter of this year, and stood at €153.2bn or €33,056 per capita at the end of June.
This represented a quarterly decrease of €1.3bn (0.9%) and was brought about by debt repayments, write-downs or write-offs, as well as debt reclassifications.
The data published by the Central Bank shows that the level of overall debt has fallen by 24.8% since its peak of €203.7bn in 2008.
Though household debt has decreased significantly in recent years, it still remains high relative to other countries. In the EU, only Denmark and the Netherlands had higher household debt relative to disposable income between April and June.
Household net worth rose to reach €600.1bn or €129,454 per capita during the second quarter, representing an increase of 0.6% over the quarter.
Meanwhile, the ratio of private sector non-consolidated debt to GDP declined in Q2, falling by 11.3% to 261.9% of GDP.
This reflected both a decrease in private sector debt of €7bn, as well as an increase in annualised GDP of €5.7bn.
A reduction in non-financial corporation debt of €5.6bn was the largest contributor to the decline in private sector debt during Q2 2015.
Private sector indebtedness forms part of the EU Commission’s scoreboard of macroeconomic imbalances.
The Commission sets an indicative threshold of 160% of GDP for private sector debt sustainability, substantially lower than Ireland’s 261.9%.
However, this threshold does not take account of the large multinational corporate sector in Ireland.