Debt management has become a household concept in recent times, but some people are more concerned about when it stopped being something we think about. Wirral Citizens Advice Bureau hosted a debate on debt under the leadership of Esther McVey who is a prospective Conservative MP for Wirral West this week. The strongest point made was that coping with debt and managing money should be taught in schools.
Ms McVey answered questions alongside the CAB on the best ways to get out of high levels of debt. The CAB got involved due to the severe strain they have been under as the call for them to help with debt issues rose 12% year on year. They have been running group training sessions during the evening to help with the demand.
The panel included Teresa Perchard the CABs Policy Director, her key theme throughout the meeting was a call for financial education in schools.
Ms McVey said: “Organisations like the CAB are under extra strain during the recession each man, woman and child already has £22,500 of government debt, and with personal debt at an all time high there needs to be strict measures in place to tackle this crisis.”
During the year the CAB saw a 114% increase in enquiries related to redundancy and another 50% rise in enquiries about secured finance. Recent CAB profiling showed average debts of £16,971 yet the estimated average timescale for paying this off would be 93 years at an affordable rate. The study showed the most significant reasons for debt levels were over-commitment, low income, job loss or disability/ illness. Those debt problems were shown to have been compounded by poor financial skills, irresponsible lending and of course, the increase in cost of living.
