Consumers were feeling increasingly comfortable with their debts in the second quarter of the year, new research reveals.

The personal credit index from CreditExpert showed a one point increase in borrowers who felt comfortable with their level of debt compared to the first quarter of 2006, despite utility price rises and high house prices.

In January, 22 per cent of those polled who had three or more credit cards or loans and a mortgage said they were worried about their level of debt, but this dropped to 18 per cent in the second quarter of the year.

Many borrowers were feeling confident about paying back their loans, overdrafts, credit cards and mortgages, with 30 per cent expecting to reduce their levels of borrowing over the next six months and just 13 per cent expecting their borrowings to increase.

Around 58 per cent had already experienced an increase in the level of borrowing in the past six months.

"Britons are increasingly comfortable with their level of debt and feel confident about their financial futures," the report concluded.

However, some experts believe that consumers' comfortable attitude towards debt is not necessarily a good thing, with Stephen Lee, professor of economic psychology at Exeter University warning that the hardened mindset of the consumer could lead them to "taking on more debt than is wise".

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