Debt Advice Demand And Spending Habits
According the news report, the free debt advice service provided by the British government is struggling to meet and increased demand for its services. In the 12 months to July 2009, there was a rise of 28% in demand for the free debt advice services it offers at nationwide agencies. This led to one in four of the agencies being forced to turn away a number of people or have debt ridden consumers wait more than a month to see someone.
This highlights an undeniable personal debt problem yet experts seem to believe much of that is down to poor spending habits by British adults. When you consider that the availability of credit and the total personal debt figures have risen hand in hand over the past couple of decades, we\’re presented with pretty tough evidence backing up the claims that credit being too widely available causes much of the problem. But surely credit in itself would not present a problem at all if we knew how to use it sensibly. But can we really blame the British population for their poor spending habits. When, exactly, have they been taught good spending habits?
Quite a lot if you believe the figures. Our combined personal debt in the UK is now 1.46 trillion and there are more credit cards in the country than there are people! And sure enough, with the rise in the availability of credit came a rise in the level of personal debts and consequently, personal insolvencies.
So there is no denying that personal credit availability and personal debt go hand in hand. But surely credit in itself would be no issue if we were able to manage our finances properly. Poor spending habits are thought to account for the majority of debt problems present among the UK population.
So essentially we send a generation out into the big wide world with untouched credit records ripe for tarnishing without giving them any idea of even the basics of money management. The Government is looking to set that right, however – better late than never! It has recently announced its plans to include money management lessons in the compulsory National Curriculm, meaning that kids from the age of five years, will soon be learning all about personal finance.
Let\’s hope that time proves this to be something of a solution to the crisis.
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