Analysts warn on household debt

As access to cheap and easy financing for lenders becomes less problematic, concerns are growing that Australia's heavily geared household sector is at risk of becoming too indebted, The Australian Financial Review reports.

According to the newspaper, Australian households are set to ramp up their debt levels again, after the global financial crisis punctured a multi-decade surge in household indebtedness.

However, Nomura analyst Victor German has warned households won't be capable of ramping up their borrowing as they did in the 1990s and 2000s, when borrowing outstripped income growth.

"It does not feel like there is a lot more scope for households to continue to leverage up," Mr German said, according to the AFR.