Money education ‘needed to reduce debt’
September 20, 2007 by admin
Filed under News, News-Loans
More education on money management and borrowing is required to help young adults in the UK avoid getting into debt, it is claimed.
According to Credit Action deputy manager Chris Tapp, Britons need more advice on the pitfalls of building up debt but stops short of calling for increased regulation on financial lending.
Too many Britons have “been educated into debt but not about debt”, he believes, calling for better advice to be provided by the government through the education system.
Sufficiently knowledge on the risks involved should be enough to help the UK’s younger adults to think more carefully about their financial management, Mr Tapp added, while the recent credit crunch, although not a good thing, could have provided a necessary wake up call to prompt people to think seriously about their money.
He concluded: “If people were better educated to the risks and people were able to manage their money more carefully … that would be more effective than further regulation.”
The National Union of Students has recently speculated that graduate debt in the UK could rise to £33,708 by 2011 because of the impact of top-up fees and recent increases to the cost of living.
