Financial education charity the ifs School of Finance says meaningful financial education can dramatically reduce financial mismanagement and consequent debt levels.
The reminder comes as part of Credit Awareness Week, which commences today.
As part of Credit Awareness Week, Credit Expert (Experian) revealed figures that show over 80 percent of Britons admit to regularly overspending and that millions of us are driven to consider last resort measures such as bankruptcy.
Key statistics in the Credit Expert research included:
– 5 percent of the population have considered or taken out an IVA or declared themselves bankrupt
– 9 percent have taken out a credit card to pay off debt on another credit card
– 10 percent have missed payments on credit cards, store cards, loan or mortgage repayments
– 24 percent of Brits admit to finding it hard to control their spending and claim financial matters are difficult to understand
“What this research seems to expose is a serious lack of understanding of the long-term consequences of these actions and how it can affect your credit rating — ultimately impacting your financial future,” said Jim Hodgkins, managing director of CreditExpert.co.uk. “We feel it’s imperative that people fully realise the implications of not managing their finances properly.”