Debt misery warning by Shadow chancellor

The Conservative MP told a Credit Today conference that there was a “vulnerable” minority of people who had poor debt managementwhich was leading to problems.

“For some, especially vulnerable families, too much debt can cause misery and great financial hardship,” said Mr Osborne.

“So debt is a significant problem for a small but important minority. For many of those struggling with debt problems are also the most vulnerable – often living from benefits or in badly paid jobs.”

Mervyn King, governor of the Bank of England, already said this week that he believes that rising debt levels and bankruptcies were creating a social problem.

Though the shadow chancellor praised the growth of consumer credit as a “boost to freedom”, he said that Britain should consider “imaginative solutions” for those in debt difficulty.