Get into debt surrounded by latest fancy kitchen items (3,6)

'kitchen items' is the definition.
(items used in the kitchen)

'get into debt surrounded by latest fancy' is the wordplay.
'get into debt' becomes 'owe' (owe money).
'surrounded by' means one lot of letters goes inside another.
'fancy' indicates anagramming the letters.
'latest' with letters rearranged gives 'teatls'.
'owe' placed inside 'teatls' is 'TEA-TOWELS'.