New figures from the Central Bank show that the level of household debt continued to fall in the third quarter of 2015 to reach its lowest level since the first quarter of 2006.
The Central Bank figures show that household debt fell to €151.2 billion in the third quarter of last year - or €32,614 per capita - down €2.1 billion or 1.3%.
The bank noted that while households continued to repay debt during the three month period, repayments were at their lowest level since 2010.
Household debt has now fallen by 25.8% since its peak of €203.7 billion in the third quarter of 2008.
The Central Bank also said that household debt sustainability continued to improve during the year.
Debt as a proportion of total assets decreased, falling to 19.3% in the third quarter. This has fallen in every quarter since the second quarter of 2012.
Despite the decrease, however, Irish households continue to be amongst the most indebted households in the EU, the Central Bank cautioned.
In another sign of the recovering economy, the Central Bank said that transactions in financial assets are now at their highest level since late 2009 and reached €1.8 billion in the third quarter of last year.
Meanwhile, today's figures also reveal that households' net worth rose to €617.6 billion, or €133,225 per capita in the three months from July to September, up 2.9% on the previous three month period.
The Central Bank said the increase was due to a rise in housing asset values and a fall in household liabilities.
However, the increase in net worth was partly offset by a fall in financial assets due to a decline in the value of equity and insurance technical reserves. This marked the second successive fall in financial assets and the first time since the third quarter of 2011 that they have fallen for two quarters in a row.
However, overall net worth has risen by over 39% since its lowest level of €444 billion in the second quarter of 2012.