Try As You Might, Avoiding Debt Can Be Impossible - Financial Education Not a Solution for Those Who’ve Fallen on Hard Times
The rising debt load in the United Kingdom is often attributed to weekend spenders using their credit cards to purchase the latest and greatest clothing, DVDs and electronic gadgets. It’s common to think the largest debtors are the ones who are living outside their means and using credit to finance their lifestyles. But problem debt isn’t just an issue for those whose fingers are worn out from entering their PIN; the people with the worst debt of all are often taken by surprise.
RUNCORN, England (PRWEB) July 20, 2006
The rising debt load in the United Kingdom is often attributed to weekend spenders using their credit cards to purchase the latest and greatest clothing, DVDs and electronic gadgets. It's common to think the largest debtors are the ones who are living outside their means and using credit to finance their lifestyles. But problem debt isn't just an issue for those whose fingers are worn out from entering their PIN; the people with the worst debt of all are often taken by surprise.
"For most people in the UK debt is not a way of life, but it consumes the lives of individuals after they have suffered from an unexpected event such as job loss or the death of a spouse," said Steve Rhode, chairman of the not-for-profit financial crisis centre Myvesta UK. "People often prepare for financial emergencies and have the best laid out plans in front of them for when crisis strikes, but all too often those plans fall short and crippling debt becomes the norm."
According to Mr Rhode, concepts such as educating consumers on how to properly manage their finances or warning individuals about the dangers of overspending do nothing to help people who end up in debt due to an overwhelming life event. Mr Rhode said:
"Whenever debt levels rise or the number of bankruptcies increases, there is always a cry that we need more education to teach people how to manage their money, but how does financial education help the single mother with three children who was recently abandoned by her husband? We can put warning labels on credit cards and we can tell people to spend within their means, but without concentrating on solutions for those who are already facing problem debt, we're just spinning our tyres."
Mr Rhode said that giving people the skills and tools necessary to avoid problem debt should be a large priority, but that emphasis also needs to be placed on providing the right solutions when people get into trouble. He said:
"All the financial education in the world can't stop life events from causing people to get into debt. And while education is important to give people the tools and knowledge to manage their money responsibly, we need to concentrate on providing caring, compassionate solutions when people find themselves in over their heads."
Myvesta UK is dedicated to helping people create healthy financial lives. The organisation provides a wide range of materials and services to inspire and inform people so that they can break down their barriers to financial and personal success. For more information visit www. Myvesta. org. uk online.
###
