Over-indebtedness ‘Massive Problem’ Among UK’s Students, Self-Employed and Low Earners
May 11, 2016
The issue of over-indebtedness among students, self-employed people and low earners around the UK is a massive problem for British society.
That’s according to the Association of Chartered Certified Accountants (ACCA), which has published a report in recent days calling for action to be taken to help people in these categories to manage their finances more effectively.
ACCA’s report takes students, self-employed people and low earners as being among those most vulnerable to taking on debts that soon become unmanageable.
The report suggests that credit card debts and other forms of borrowing have increased significantly among these vulnerable groups since the 2008 Financial Crisis.
Concerns were also raised in the report that rates of saving have declined in recent years among students and self-employed people throughout the UK.
Specifically with regard to students, ACCA’s experts have called for the rest of the UK to follow Scotland’s lead and to introduce a system that enables university attendees to pay their fees on a monthly basis rather than at the beginning of each new term.
“Introducing monthly maintenance payments instead of paying one-third of the annual amount at the beginning of each term is a simple change with big potential benefits,” said Anthony Walters, head of policy for ACCA UK.
“This already happens in Scotland and mirrors how payment is received in the working world much more closely, so helping students learn the valuable skill of managing their finances over time.”
Walters has also called for action to be taken to create lending markets in the UK that are less geared towards profitability and more towards helping people manage their money without falling into serious debt problems.
“Digital innovations are making credit, and therefore debt, ever-easier to access,” ACCA UK’s head of policy has said.
“There is however an opportunity if we act quickly to use these technological advancements to introduce a new, ethical lending market that puts responsible lending and the needs of borrowers, particularly those from vulnerable groups, ahead of profitability.”
If you are struggling with debt problems of any sort then Scotland Debt Solutions may be able to help. Contact us today to arrange a free consultation.
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