NEW curbs on store cards and health warnings on credit promotions were proposed by the Liberal Democrats yesterday to help to combat spiralling personal debt.
Vincent Cable, the party’s Treasury spokesman, said that one in eight households was now seriously struggling with debt repayments.
Unveiling a ten-point plan to deal with debt, he called for health checks when credit was marketed and an investigation into payment protection plans.
“The number of distressing stories relating to individuals who are unable to deal with high levels of debt is growing. So far the problems of personal debt have seemed manageable because interest rates have been low, house prices high and unemployment low. But this could change rapidly,” Dr Cable said.
“It is deeply worrying that the relationship between debt and income is at an all-time high and problems of debt servicing and extreme debt are growing.
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“The Government has frankly been complacent on this issue.”