The Liberal Democrat Party has warned that rising unemployment could result in more debt, arrears and repossessions.
Recently published government figures show unemployment has reached a seven year high.
Liberal Democrat shadow chancellor Vince Cable says: “These figures are seriously worrying and represent a trend of rising unemployment stretching back almost two years.
“It means that growing numbers of families will be unable to sustain their debt obligations and will drift into arrears, personal bankruptcies and home repossessions.
“The situation is not as bad as in the latter years of the Conservative government, but we could be heading in that direction unless the trend is reversed.
“Since the government came into office, there has been a tripling of 16 and 17-year-olds who are not in work or full-time education.
“The positive story about unemployment, which this government successfully developed, is now seriously unravelling.”