Wales in debt ‘catastrophe’

A rising number of people in Wales are facing "catastrophic levels of debt", one of the principality’s leading MPs has claimed.

According to Welsh Liberal Democrat leader Lembit Opik, Wales has seen a 44 per cent rise in individual insolvencies over the past 12 months.

The rise in Welsh people with debt management difficulties was attributed to increased interest rates, rising property prices and "irresponsible" lending.

He also claimed that measures should be taken by the government to tackle unscrupulous loan lenders.

Mr Opik added that there is a need for "vastly improved independent financial advice and education" to encourage a better attitude towards secured personal loans.

Research by the political party also revealed repossession orders in the principality had increased by more than 29 per cent over the year.

A study by the Resolution Foundation revealed that the creation of a generic financial advice service could reduce debt on unsecured personal loans by about £2.2 billion.

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