The government needs to do more to ensure that people in the UK are aware of the risks associated with taking on considerable amounts of debt, it has been claimed. According to Chris Tapp, deputy director for national money education charity Credit Action, young people in the UK often get themselves into trouble when they leave university because they've been "educated into debt but not about debt".
Figures released by push.co.uk show that the average student takes on £4,074 in debt every year, while the National Union of Students (NUS) predicts that most students will leave university in 2010 with debt levels in the region of £33,708 as living and tuition fees escalate.
This means that many graduates will resort to borrowing on credit cards and taking out bank loans, and while Mr Tapp has in no way suggested that this practise should be avoided outright, he urged consumers to adopt a cautious approach when it comes to borrowing - and suggested that education was the best way of achieving this shift in outlook.
Indeed, he championed the merits of education over the passing of legislation to make sure that people take out loans only when they are in a position to repay them in the agreed timeframe.
"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.
"I think actually if people were better educated as to the risks and people were able to manage their money more carefully than they do now then that would go a long way to helping people stay more in control, and I think that would be more effective than further regulation."
Mr Tapp believes that the government should provide more financial education in schools and universities in particular, as part of its drive to ensure the finances of people in the UK are managed well, that debt is avoided and that those who do require a uk personal loan only apply to take one out if repayments can be met.
However, he believes the onus does not fall solely on the government.
"I think lenders should be doing more to educate people as to the risks they're taking on when they take on one of their products," he opined.
Got a Question? Ask.
Ask the community a question about this article:
Q&A Powered by:
Latest Personal Finance Articles
The Four Main Types of Pensions in the UK
By: John Mce | 20/08/2008
In this article we will explain the four main types which will hopefully help you feel more informed about which option is most suitable for your circumstances.
How to Avoid Over-Spending
By: Ki Gray | 20/08/2008
Many people have trouble sticking to their budgets and staying in the black each month. These simple tips can help even the worst over-spenders curb their bad habits and foster financial responsibility.
How to Make a Budget (and Stick to It)
By: Ki Gray | 20/08/2008
Financial stability is not as difficult to achieve as many people think--all it takes is a little planning, a little discipline, and the desire to make it happen.
Online Shopping To Recession Proof Your Shopping Habits
By: Matt Chang | 20/08/2008
Consider the internet to replace department store shopping and save money.
Brits Set Sights Overseas In Economic Storm
By: Mark Dawson | 20/08/2008
The number of Britons looking to leave the country for longer than just a two-week break in the sun is increasing.
Credit Score: How To Improve Your FICO Rating
By: Hector Milla | 20/08/2008
Have you ever tried to get your loan refinanced without success? if your answer is yes, then the most probably scheme is that you could not do it because of your credit score. However, there are some simple measures that you can take in order to improve your FICO rating
Tips for Saving When Money is Tight
By: Katlyn | 20/08/2008
Finding ways to save when money is tight can mean the difference in going deeply in debt and staying above board. A few changes in your lifestyle can make a big difference.
How to Pay Bills Online
By: Ann Knapp | 20/08/2008
If you're still paying bills via snail-mail, it may be time to consider paying them online. With today's online bill pay systems, you can forget the stamps and checkbook and discover the ease and convenience of your nearby computer. You'll need a computer, access to the internet and an online bill pay service. This is moderately difficult.
More from Paul McIndoe
Cyber Crime Hitting UK Small Business
By: Paul McIndoe | 26/02/2008 | Business
Research reveals that 44 per cent of small businesses in the UK have been a victim of cybercrime, including internet scams, identity fraud, phishing and data theft.
Hotels in London are the Most Filled in Europe
By: Paul McIndoe | 25/02/2008 | Hotels
A recent survey identified that London hotels are the most occupied in Europe, although they are not the most expensive, as that honour belongs to the French capital of Paris.
A World Stage: the History of the Royal Opera House
By: Paul McIndoe | 21/02/2008 | Theater
The Royal Opera House, located in the Covent Garden area of London, has been one of the city’s finest landmarks for over 250 years, but few people realise the trials and tribulations the Opera House has been through since its original opening in 1732.
More to Auld Reekie Than Rugby
By: Paul McIndoe | 21/02/2008 | Destinations
If you’re planning on attending the upcoming England v Scotland rugby union match, there are some things to bear in mind to ensure your trip is as memorable as the match itself.
The Hollywood of the South: Shreveport, Louisiana
By: Paul McIndoe | 18/02/2008 | Movies
Just a few years ago, the words "movie stars" and "Shreveport" were unlikely to appear in the same sentence; but this ubiquitous southern city in Louisiana is now part of the third most prolific film making regions in the USA.
Experience the Far East in Style
By: Paul McIndoe | 18/02/2008 | Destinations
Visitors to the Far East can now experience the fantastic culture, food and scenery in some of the best - and most luxurious - resorts on earth.
Dubai Hosts 'crossroads of the Future' Conference
By: Paul McIndoe | 18/02/2008 | International Business
The phenomenal success of the Middle East’s business and tourism boom was highlighted at the MEDFA Conference held in Dubai, where the theme was 'crossroads of the future'.
Getting Car Credit is Easier Than you Think
By: Paul McIndoe | 15/02/2008 | Cars
Despite the recent credit crunch having wider implications in the credit industry, getting car credit is easier than you think.
Finance 
