Debt Education Is the Key

Are we really educating the next generation and giving them the tools to be able to progress in life with a solid knowledge of finance and a future free from debt?

There have recently been reports in the media with regards to educating the next generation on how to handle their finances and generate knowledge of the debt advice and the solutions available.

I was lucky and had parents who believed you needed to earn treats and if pennies were limited - our treats were cuddles! You soon learn the value of money when it is earned through chores. When I got my first full time job I was expected to pay my way. It was "tough love" and my 3 year old daughter is learning this too - although she is sometimes way too smart - she points to my purse and says "Mummy has got pennies for sweeties"!

It is only going to get tougher with our young generation facing much higher university fees, plus their parents coping with earnings declining in real terms. Rising utility bills, hikes in car insurance, higher pension contributions and on it goes. At the end of May 2011 UK personal debt stood at £1,452bn up more than £800BN than 10 years ago.

It is hardly surprising Payday loans are a massive growth industry as are sites inviting you to flog your gold. Money has become a rare commodity and when you are faced with not being able to put food on the table or pay the rent, many through caution to the wind and borrow the money at ridiculous interest rates.

We have a great rescue culture in the UK for helping those who have overcommitted and are in need of debt help and advice with their finances. Solutions range from debt management plans to IVA and bankruptcy. Debt Solutions are tailored to each individual need and they need to be carefully considered. There are helpful debt calculators available to help budget and assess where money is going.

It is not just consumers that are struggling with their finances in today's market, businesses are also struggling. As a result of spending cuts and the rise of VAT, consumers are restricting their spending which means that businesses are seeing a decline in trade and this is hurting their sales and cash flow.

There are also solutions available for businesses in need of business debt help such as a CVA, liquidation, administration and informal turnarounds.