Household debt is now almost half of average annual household income, according to Aviva.

In its Aviva Family Finances report, released this week, the provider found that the average debt is now £10,604 while the average household income is £23,796.

Those in a committed relationship with two or more children had the highest levels of debt at £16,428 but also had the lowest household income.

This group is likely to spend £254 per month in paying off their debts, compared to average repayments of £224.

There were also differences in location, those in London had an average debt of £23,609 while those in Wales had debt of only £3,476.

Paul Goodwin, director of workplace savings at Aviva, said: “Debt is a normal part of many families’ financial management strategies and as long as people can service their loans, they can serve them well.”

Regarding savings, 30 per cent of people say they do not have any savings for the future and 39 per cent say they do not save on a monthly basis.

Worryingly, women’s monthly savings fell to £4 while men’s increased to £58.

Looking to the future, worries about inflation and meeting the cost of basic necessities dropped by three per cent to 61 per cent but, in the run-up to Christmas, worries about meeting unexpected expenses increased to 42 per cent.

Mr Goodwin said: “While the high cost of living is certainly an issue for many families, the fact they appear less worried than before indicates they may be starting to acclimatise to today’s economic environment.”