It is becoming more and more apparant that an ever increasing number of families are going to be facing serious debt management difficulties in the very near future, an MP has suggested.

Shadow chancellor for the Liberal Democrats Vince Cable claimed that more and more households are now struggling to make repayments on secured loans and home loans as interest rates and property values continue to rise.

He said: "A generation of young people are now finding it almost impossible to get on to the housing ladder except by borrowing at levels which are ludicrous and dangerous."

Mr Cable added that if Bank of England governor Mervyn King's "ominous warning" that the base rate will rise again is to come true then "many homeowners will simply not be able to pay".

Couple with this the increasing dependency of young people on credit cards and cheap loans, and more and more people will be finding themselves in financial difficulties each time there is a rise in interest rates, as their disposable income reduces each time their home loan repayment increases.

The shadow chancellor stated the level of repossessions over the past two years is "soaring".

Stuart Pike is a Director of Inter Financial Limited, based in Guernsey in the Channel Islands. Through their website All About Loans Inter Financial offer advice and information which is all about loans and personal finance in the UK.