Consumer debt has now hit a massive £1.2 trillion, bankruptcies and insolvencies are soaring and there are now more credit cards than people in the UK.
Conservatives have announced a series of practical proposals to help stop people getting in over their head and suffering financial distress. The policies include:
- Financial education in schools for young people between 11 and 18.
- Cracking down on illegal loan sharks.
- Cooling off period for store cards to tackle 'high pressure' sales.
- Clearer information for credit card users on the costs involved. Stopping irreponsible marketing of 'bankruptcy-lite' Individual Voluntary Agreements.
A new online campaign has also been launched - www.sort-it.co.uk - giving advice on how to plan, budget and manage your money.
Harriett Baldwin explained,
"There's nothing wrong with the responsible use of credit, but an increasing number of people are getting into financial trouble, causing themselves and their families great distress.
"Tackling personal debt and financial exclusion is an issue of social responsibility. There is obviously a role for government to ensure consumer protection, promote financial education and encourage financial inclusion. I hope that government, civil society and business can all work together and each play their part."