Debt-to-income ratio of deficit households, whose spending is higher than their disposable income, reached 42 percent 2014, according to a report released by the LG Economic Research Institute on Monday.

The proportion of income spent on debt repayments is far higher than the overall figure for all households of 28.3 percent.

The ratio for households in deficit has risen steeply since it exceeded 30 percent for the first time in 2009, peaking in 2013, when their DTI ratio hit 42.7 percent.

“Considering that deficits are more prevalent in low-income brackets than high-income households, the statistics show it is necessary for the government to develop policies to increase the incomes of poor households in a bid to cut their debt ratios,” the report said.