Young people 'need more education to prevent debt'
Published On 27 September 2007
Young people need better "financial literacy and budgeting" skills in order to prevent them getting into debt and needing things like IVAs in the future, an industry expert has said.Becky Boden-Wilkes, spokesperson for National Debtline, explained that it was vitally important that children are taught about budgeting and debt as these skills are so important in later life.
"Debt isn't a bad thing by any means, most of us use credit and have a personal loan, credit card or mortgage, credit is there to get you through the ups and downs," she added.
"Financial literacy is a really big thing. Financial literacy and budgeting could make a massive difference."
Recently, the Council of Mortgage Lenders (CML) proposed that the way interest rates on loans and mortgages would be changed to make it clearer to borrowers how much they should pay.
It said that the traditional Annual Percentage Rate (APR) should be scrapped in favour of the Dynamic Annual Rate (DAR) as it is a "useful measure for consumers who are uncertain about how long" they will hold their debt.
