RESEARCH by an online UK consumer credit reference agency that Guernsey is one of the least indebted areas in the British Isles makes for cheering reading, especially in these bleak times and coming immediately after the cost of Christmas.

It reinforces the view that the island is a comparatively privileged area where many have a good standard of living and the benefits of an affluent economy are being felt across the board.

The news is even more welcome given a survey by the respected Chartered Institute of Personnel and Development which forecasts widespread job losses in the UK. If mirrored locally, that would be equivalent to about 600 redundancies here which, on top of the 300 already known, would push the total close to 1,000.

There is no evidence that things will be anywhere near as bad as that and there are still good grounds for believing that the island can avoid some of the worst consequences of the credit crunch. That said, the research about levels of debt here should not be an excuse for complacency about the real issues facing many islanders.

There is an unacceptable level of relative poverty in the island, which became apparent when Guernsey was in the middle of the boom years, and little has been done to change that now times are harder.

The Citizens Advice Bureau, which is at the sharp end of assisting people with money difficulties, knows how many are struggling at the moment and is itself looking to take on additional counsellors to cope.

And the island itself has a culture of debt fuelled initially by housing prices and the desire not to wait for ‘must have’ purchases.

It is perhaps a peculiarity of the two-speed society here that borrowing large amounts, perhaps for a boat or a light aircraft, is acceptable and called a mortgage while struggling all year to pay off a £2,000 loan taken out to fund Christmas is not and is debt.

But in either case, the key to the acceptability – however defined – of those borrowings is the income underpinning them.

What the research really shows is that Guernsey has high debt levels but they are generally sustainable while there is an abundance of well-paid employment and a strong economy.