Jo Swinson and the Lib Dems plan to tackle household debt
Liberal Democrats have called on Gordon Brown to take responsibility for reining in irresponsible lending on mortgages, personal loans and hire-purchase deals. British people will have debts of a staggering £1,000,000,000,000 (one trillion Pounds Sterling) by summer 2004.
Lib Dem Shadow Chancellor Vince Cable MP said, “Consumer borrowing has been keeping the British economy going but this isn’t sustainable. Yet at every turn people are being encouraged to borrow more. Supposedly interest free loans are dropping out of the sky, mortgages are given at four or five times our earnings, credit card companies are falling over themselves to encourage us to spend more.”
Lib Dem plans to tackle the household debt problem include curbs on unsolicited credit promotion, a crackdown on loan sharking, vigorous policing of excessive interest rates on store and credit cards, and an extensive network of centres to provide independent, low cost financial advice.
Local Lib Dem Parliamentary spokesperson Jo Swinson welcomed the plans, “Rising household debt is problem that will only get worse as interest rates rise. The Government must do more to discourage irresponsible lending and help people make informed financial choices.”