| When we look at the statistics of debt | | | | for their lending systems which seems to |
| in the UK do we consider the effect this | | | | make obtaining credit easy, and the |
| has on our everyday lives and country as | | | | Government for allowing so much |
| a whole? | | | | advertising of credit, but once we have |
| - Britain's personal debt is increasing | | | | experienced financial difficulty |
| by £1 million every four minutes. | | | | ourselves and know the implications, |
| - The total credit card debt in April | | | | then it is up to us to do something |
| 2006 was £56 billion! | | | | about it and to educate and empower our |
| - 39% of Brits overspend on their credit | | | | younger generation to not follow in our |
| cards on day-to-day purchases | | | | footsteps. |
| It is clear that Britain is in debt, but | | | | Getting Somewhere |
| just how much thought do we give to this | | | | The good news is, the Financial Services |
| and the implications? | | | | Authority (FSA) are working with the |
| We rely on businesses and businesses | | | | Dept. for Education and Skills, the main |
| rely on us. | | | | curriculum agencies and other |
| A business provides jobs only as long as | | | | organisations to help teachers deliver |
| it is making a profit. In order to make | | | | personal finance education. |
| a profit, a business needs sales. | | | | The Personal Finance Education Group |
| Without sales, there is no business, no | | | | (PFEG), funded by the FSA and the Dept. |
| job and no income. Not only for the | | | | for Education and Skill, aim to promote |
| manager/director but also for the | | | | and facilitate the education of all UK |
| employee. | | | | school pupils about financial matters. |
| If Britain is a nation in debt then | | | | The Department for Education and Skill's |
| surely businesses and households across | | | | guidance suggests that schools teach: |
| the nation will feel the effects. People | | | | - 5-7 year olds, that money comes from |
| can't spend what they don't have, and if | | | | different sources and can be used for |
| people are not spending, then businesses | | | | different purposes |
| are suffering. | | | | - 7-11 year olds, to look after their |
| Incredibly the number of people earning | | | | money and realise that future wants and |
| more than £30k a year asking for | | | | needs may be met through saving,/li> |
| financial help has risen by 275% in the | | | | - 11-14 year olds, what influences how |
| last 3 years! | | | | we spend or save money, and how to |
| Encourage and Educate | | | | become competent at managing personal |
| It is becoming clear that we need to be | | | | money |
| educated when it comes to our finances. | | | | - 14-16 year olds, to use a range of |
| We need to be encouraged to become fully | | | | financial tools and services, including |
| aware of what we are getting into when | | | | budgeting and saving in managing |
| we take out loans or spend on credit | | | | personal money |
| cards rather than get caught in the debt | | | | The Solution Before The Problem |
| trap. | | | | It is encouraging that the focus to |
| Because we cannot predict the future, we | | | | educate young people is in the pipeline, |
| do not know whether we will be caught | | | | however, surely the questioning of how |
| out or not, so it is essential we are | | | | much freedom creditors have to advertise |
| brought round to the way of thinking | | | | their services needs attention? Daytime |
| that, if we can't afford to pay for it | | | | television is full of advertising for |
| now, then we should save up for it. | | | | loans and credit cards, and how many |
| Of course, for many people it is too | | | | letters do we get through our doors for |
| late for this kind of thinking, but not | | | | loans and credit cards, tempting us to |
| for our younger generations. | | | | take out credit? |
| From our own experience, should we not | | | | These are areas that also need |
| be thinking of educating our young | | | | consideration. If things continue as |
| people regarding the implications of | | | | they are, then the nation will continue |
| taking out credit if all goes wrong? | | | | to feel the repercussions of debt. More |
| 29% of 16-24 year olds said they would | | | | and more businesses will fail and more |
| not know how to prepare and manage a | | | | and more people will be out of work |
| weekly budget. | | | | It is imperative that the Government |
| 62% of young people said if they get | | | | look at the whole picture as well as |
| into money trouble of debt, they would | | | | thinking about ways to handle financial |
| not be able to name any advice or | | | | difficulty and educate our young people. |
| support services they could turn to for | | | | They need to take a long hard look at |
| advice. | | | | the credit lending system and |
| Bankruptcies among 18-29 age group have | | | | advertising campaigns to change the way |
| more than doubled in the last 4 years! | | | | people look at credit and to realise the |
| Surely this spells something out to us? | | | | implications of taking out credit should |
| Take A Stand Against Debt | | | | all go wrong. Over indebtedness not only |
| Its great that we have Debt Management | | | | affects your finances, but also has a |
| Companies such as Payplan to turn to | | | | great emotional impact on your life. We |
| when we find ourselves struggling with | | | | cannot just rely on the Government to |
| our financial situation, however, it | | | | deal with it, we need to take a stand |
| would be much better if there wasn't a | | | | ourselves to stamp out debt in our |
| need for companies such as these. | | | | nation. |
| We could continue to blame the creditor | | | | |