Liberal Democrats Launch Debt Action Plan

5.00.05pm GMT Wed 16th Feb 2005

The Liberal Democrats today launch their action plan for tackling personal debt. The Facts

· Total British household debt is estimated at £1,050 billion of which £837 billion is secured.

· British household debt is currently estimated at 130% of income.

· The Citizens Advice Bureau had 706,700 requests for advice and help on debt in 2003/4 compared to 405,000 in 1996/97.

Launching the Action Plan, Liberal Democrat Shadow Chancellor, Dr Vince Cable MP, said: "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.

"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.

"The Government has frankly been complacent on this issue.

"Today I am outlining 10 clear policies for tackling the ever-growing problem of consumer debt and the associated bubble in the housing market.

"The Government must urgently take action to improve economic stability and banking regulation so that such debt levels do not spiral out of control and consumers are clear on how much they have borrowed. There must be safety nets in place should the housing market collapse and many find themselves unable to pay their mortgages."