A recent survey has confirmed that homeowners with debt problems are increasingly trying to borrow themselves out of trouble.

During the last year, consumers have increased their unsecured debt to an average of 194% of their net take home pay. This is despite falling house prices and increasing negative equity. Last year, it was “only” 170%.

In contrast, those debtors who do not own their own homes have been far more prudent. Their level of debt hardly changed over the last year.

This demonstrates that homeowners still feel that owning property allows them to fund a higher lifestyle through debt and it will take time for it to sink in that this is no longer true.