Despite huge borrowings in the past, majority of households in United Kingdom are quite comfortable with their debts as per a research conducted by Alliance & Leicester.

The research says that present interest rate would have to nearly double before UK faces debt crisis like 1990’s. The borrowings including secured and unsecured loanshave more than tripled from £337bn in 1990 to above £1.0 trillion in 2005.

The average UK household debt has increased from £31,238 in 1990 to £83,722 last year. The research reports that people are nearly spending the same amount as in 1990 in monthly interest payment. The average household earnings have almost doubled up in the last 15 years but the cost of borrowings in comparison to income is nearly half.

Alliance & Leicester says that despite borrowings being affordable, there are some signs of pressure in high interest unsecured debts.