Greater education needed on debt, expert says

National money education charity Credit Action has called for greater financial education to help people with debt management or to stay debt free.

The organisation’s deputy director, Chris Tapp, said that while further regulation is not necessarily the way to reduce consumer indebtedness, financial education could help people avoid the need for a debt solution in the future.

“I think what we need really is people to be better educated when it comes to borrowing – better educated when it comes to managing their money – and so people understand the risks they’re taking on, to not simply borrow because they’re able to,” Mr Tapp said.

The aspect of self-control, in accordance with more education, would be “more effective than further regulation” at combating Britain’s debt level, Mr Tapp added.

He suggested that people have to this point been “educated into debt” but not about debt, which could have helped fuel a culture that is now reliant on debt management.

Credit Action was established in 1994 and offers financial advice and training to help people improve their money management.