The risk of debt and repossession brought on by the potential recession could cause an “epidemic of mental distress”, according to the Liberal Democrats.
Party leader Nick Clegg noted at a conference at the University of Sheffield that the financial crisis may have an impact on people’s mental health and put forward a list of proposals to help limit the potential problem.
He called for the introduction of debt counsellors to help people with mental health problems organise a debt management plan, while also stating procedures should be put in place enabling individuals to freeze their credit rating so they would not be able to take out any new loans or credit cards.
“It is the hidden tragedy of a recession that mental illness will surge as people’s jobs and homes are increasingly under threat,” Mr Clegg noted.
Recent data from the Financial Services Authority revealed home repossessions increased by 71 per cent during the second half of 2008.
By Tom Musk