Press Release Summary = According to a new research, personal debt is mounting swiftly in the UK. As a result, more and more people are likely to take debt consolidation loans or seek IVAs in the future.
Press Release Body = London - April 14, 2007 ( adverse-credit-debt-consolidation.co.uk ) : Recent figures published by Credit Action, a national money education charity, shows that personal debt in the UK reached £1,310 billion by the end of February 2007 - up by 10.5% since February 2006. Altogether, there is £116 billion more personal debt now than a year ago.
Industry experts are of the opinion that the problem seems to be getting worse, as consumer debt is increasing at a rate of £318 million per day. On average, 300 people in the UK have to seek an IVA or declare themselves bankrupt every single day.
Citizens Advice, a registered charity for legal and financial advice, also reports that people are becoming increasingly worried about their personal debt problems and that it deals with 5,300 debt problems each day.
Figures from the Department of Education and Skills indicate that debt problems will be more severe for the current generation of teenagers, as they are 'disturbingly financially illiterate'. According to a sample survey carried out by the Department, 25% of the 16 to 21 year olds believe that store cards offer better value than credit cards and 40% of the young generation does not understand the meaning of APR.
The study also revealed that 83% of parents are worried that their children will run up significant debt in the near future. Despite the concern, 30% of parents say that they never discuss debt or credit at home with their children. Nearly 22% said that this was because their children were not interested in financial matters and 48% did not want to \"appear like a nag\".
Martin Lewis - creator of moneysavingexpert.com - said, "Sadly in the UK, money is often a taboo subject, which adds to the huge problem of financial illiteracy in the UK. It\'s time all parents and students started talking, considering their cash, understanding how the system actually works and discussing how to live within a budget. Do that and there is no one who should be put off entering higher education because of worries about student debt.\"
Expressing his views on the issue of teenage debt - Bill Rammell, the minister for higher education, recently said, "While parents are happy to talk with their offspring about socialising, boyfriends and girlfriends or getting a job, it would appear that in many families money remains the last taboo subject. We are encouraging parents and their children to sit down and talk about money together.\"
Lately, charities have also started urging people to be more open about debt problems. Derek Oakley, the insolvency director at Debt Free Direct, said, "One of the things that we really think is needed in order to help people deal with these things [is] to actually start talking about it, to actually start learning about it too, because there\'s a lot of ignorance about money matters, and a lot of shame.\"
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