Families ‘could lose everything to debt’

Mervyn King told the Treasury select committee that credit card debt and loans were getting people into problems.

“The real problems in indebtedness are not in the mortgage market but in the unsecured debt market where a number of people have got themselves into desperate trouble. For them and their families, that’s a serious problem,” Mr King told the committee.

“All lenders and borrowers should think very carefully before they either lend or borrow.”

This is the latest warning from Mr King, the UK’s most important banker, about the state of Britain’s debt levels

In his latest comments he added that some families may be getting “desperate” about the level of debt they have incurred.

However, for anyone concerned about their repayments, whether big or small, debt help is available.