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UK reaping what it has sown in terms of personal debt, expert claims

04/02/2009

The UK is reaping what it has sown in terms of the high levels of personal debt possessed by many consumers.

This is the opinion of Nick O`Reilly, president of insolvency trade body R3, who said that debt levels will continue to rise unless people change their behaviour.

According to the expert, the young adults of today have been led to believe that they can have anything they desire on credit without experiencing any ill consequences.

He stated: "Every day, R3 members, who are insolvency practitioners up and down the UK, see personal debtors who have got into this situation through a lack of skills and confidence in financial matters."

Mr O`Reilly made his comments in the wake of research published by the University of Manchester, which suggested that standalone financial education qualifications can dramatically improve people`s knowledge, skills and confidence in financial matters.

The study, which tracked more than 3,000 students over a period of up to three years, suggested that this knowledge enhancement can lead to long-lasting behavioural change.

Recently, Tenon Recovery suggested that men are around 2.5 times more likely to file for bankruptcy than women, the Observer reported.

The firm cited anecdotal evidence that females are more efficient at tasks such as keeping financial records in order as a possible factor behind the figure.

More than 4 million fear they`ll be made redundant 16/12/2010 - According to R3`s quarterly personal debt tracker, more than 4 Consumers took on more mortgage debt in July 26/08/2010 - Consumers took on £2bn more mortgage debt than they repaid Debts called in by parents 26/08/2010 - According to research, `the bank of Mum and Dad` is Teenagers `scared of debt` 19/08/2010 - Nearly two thirds of teenagers are `scared` of debt, according