DTI releases over-indebtedness report

In it, the DTI said that the government should educate children and adults about the problems of debt, such as through the expanding of access to finance information for employees.

Plans are also included to improve the financial education of students, through the introduction of basic financial skills into GCSE maths in England from 2008. University students will be targeted by the Money Doctors finance and debt initiative.

Highlighted in the report was action that the government has already taken, such as the new Consumer Credit Act which should create more responsible lending than before.

For those currently in debt, £120 million has been given to improve the amount of financial advice on offer, as well as to help stop loan sharks.

But to stop people from falling into a debt trap in the future, there are also plans to provide “breathing space” for those who want to repay their debts proposed in the draft Tribunals, Courts and Enforcement Bill.