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