Banking and Financial News

Debt is a "massive issue" - 04/02/2008

Excellent! Very Good Good Fair Poor

Why not be the first to rate this article?

Personal finance magazine Moneywise has said that if people were better educated about money at an early age, less people may struggle with debt in later life.

According to editor Rachel Lacey, debt is currently a "massive issue" and is exacerbated by the "buy now, pay later" mentality of many Brits who simply do not understand how loans, credit cards and other personal finance products work.

Lack of savings and misinterpretation of interest payments and other charges is leading many people to be under strain through increasing amounts of debt, she added.

And because there is no end in sight for this type of problem, basic education related to fundamental personal finance issues should be incorporated in the national curriculum.

"Very, very few schools actually teach any personal finance at all," Ms Lacey said. "We want people to just understand how financial products work by the time they leave school."

This kind of support could lead to less debt and more people putting money aside instead of spending it, she added.

"We don't want people to be in a situation where they don't think about saving. We want them to understand the implications of them taking on credit."

Those who do want to look for personal finance products and carefully consider their options may find price comparison sites useful for doing so.

© Adfero

Back to Index