Bermuda needs to establish a minimum living wage to help stop people getting stuck in debt, a campaigner said last night.

Sheelagh Cooper, of the Coalition for the Protection of Children, was speaking as she backed a bid to reduce the rate of interest on defaults on court-ordered debt payments from seven percent to three percent.

Ms Cooper said: “It makes eminently good sense — high interest rates just make things worse for people in debt. With the problems we have in this country just now, anything we can do to reduce the impact of that is a good thing.”

Shadow Finance Minister David Burt introduced a bill in the House of Assembly last Friday, aimed at cutting the rate of interest on defaults on court-ordered debt payments.

Mr Burt said the rate had been set years ago, before the global recession and slashed interest rates, so the burden on those already struggling with money problems should be eased by a reduction.

Ms Cooper said: “We are going to have to look very seriously at the whole question of wages people can live on.

“Many of those people who fall into debt are employed but only part-time and often for very low wages.

“There is no way they can live sustainably — pay rent, buy food and look after their children.”

But she added: “Of course, people need a job first before you can have a living wage. I am optimistic that this Government is going to find ways to create the level of employment needed to bring people back into the workplace.”

Mr Burt’s bill followed another by party colleague Wayne Furbert to put an end to the threat of jail for people who fall behind with payments and end up in court. Mr Burt said that he hoped his Statutory Interest Rate Reduction bill would attract cross-party support. Ms Cooper said: “I do see more understanding from the judiciary in matters related to debt.”