Latest Debt News
"Crashing" house prices leaving families in debt
28/08/2008 18:25:00
Falling house prices are leaving families who are "no longer able to make ends meet" falling into debt, a Liberal Democrat has said.
Vince Cable, the party's shadow chancellor, says negative equity damages those families already in financial difficulties and may lead to repossessions if they fall into debt.
He describes Nationwide's figures for average UK house price as indicating further financial difficulties are ahead.
Mr Cable says: "All the signs are that we are at the beginning and not the end, of a very painful process."
He says 300,000 people are suffering the effects of negative equity and expects this figure to quadruple if conditions continue into the next year.
Accusing the government of dithering, he suggests negative equity is a key factor of households falling into debt and being unable to keep their homes from repossession.
Earlier this week, the Liberal Democrats announced proposals on how to minimise the damage debt and repossession causes.
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