The Conservative party has commissioned a study into the personal debt crisis after reports that household debt will top £1trillion this autumn.
Shadow chancellor Oliver Letwin has asked economist Lord Griffiths of Forestfach to chair the study and seek ways to help families deal with debt and re-adopt the savings culture.
The initiative comes as Westminster last week hosted a one-day summit where representatives of the credit industry, lenders and debt advisers met to discuss escalating debt in the UK.
Recent research shows that the average adult has debts of over £1,100. Debt from mortgages, other loans and credit cards stands at £956bn.
But Rod Murdison, proprietor of London-based Murdison & Browning says: “Doing a study on personal debt as a whole is a blunt instrument. A report on high interest rates and unsecured debt versus secured debt would be more beneficial.”