Economic affairs spokesman Vince Cable said that both the major parties were “wholly silent” on the issue of personal debt, yet bankruptcy cases are rising.
Speaking at the party’s conference, Mr Cable said that current debt levels affect the futures of millions of people and something needs to be done.
His criticism of current policies comes as personal debt levels reach £1.1 trillion and show no signs of decreasing in the near future.
Tony Blair’s time in Downing Street has seen a doubling of consumer debt and the Liberal Democrats said that a solution to this is needed.
Although the government has introduced personal finance education into the national curriculum, Mr Cable wants more action to stop debt levels from rising too high.
With an average debt of £17,000 for every man, woman and child in the UK, Mr Cable joins Bank of England governor Mervyn King and other experts voicing fears over credit repayments.