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Financial education 'could help families with debt'

Published: 05/05/2011

The only way for the UK's families to get out of debt is to have better levels of financial education. 

This is the view of Martin Bamford, chartered financial planner at Informed Choice, a family-owned firm of chartered financial planners.

He said that if families take more control over their personal financial planning, they could become less reliant on debt.

"Certainly the recent recession hasn't helped families," he explained.

"A lot of people were in a very bad position before the recession hit, so their budgeting … wasn't particularly good and they tended to over rely on things like debt and put themselves into a very weak position. When the recession hit, it made things a lot worse."

Moreover, people in debt can be refused credit in the future, putting further stress on their financial planning.

The situation has also led to a wider rich-poor divide, Mr Bamford stressed, claiming the UK had a "two-tier financial crisis" during the recession, hitting people differently and the indications of this will continue to widen the gap.

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Last Updated: 11-02-2012