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The average family in debt now owes the equivalent of nearly half of their household's yearly income.

This is according to the latest Family Finances Report published by Aviva. Aviva's figures show that more than half of UK families have some form of debt that they repay on a monthly basis. On average these families owe £10,604 which is just under half of the average annual household income of £23,796.

Many households are spending a large part of their earnings on debt repayments alone. In November average monthly debt repayments were £224, a slight increase on the August figure of £218.

The most common type of family borrowing is credit cards which account for 43% of debts. Other significant types of debt are overdrafts (26%) and personal loans (25%).

Director of Workplace Savings at Aviva, Paul Goodwin, 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. However, minimum payments need to be maintained or people may find that what seemed like sensible borrowing could become an increasing drain on their financial resources.'