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    The UK could be heading for an "epidemic of repossessions" unless decisive action is taken by the government to help families with debt problems, it has been claimed.

    According to the Liberal Democrat economic spokesperson Vince Cable, more and more homeowners are finding it impossible to keep up with their debt repayment demands and many look set to lose their homes.

    Mr Cable has suggested that the interest payments British families are being obliged to pay are so high that in many cases very little cash is left over to cover other household bills.

    "Homeowners are having to deal with increased interest payments as their fixed-term mortgages come up for renewal," said the opposition MP.

    "Large numbers of households simply cannot afford to pay."

    Earlier this week, the Conservatives blamed prime minister Gordon Brown for allowing a "debt bubble" to develop within the British economy in recent years.

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