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Numerous different consumer groups and Government agencies have recently had a little “heads together” session, as a means to formulate a viable solution, in order to curb the UK’s current debt pandemic.

Accordingly, one of the most common suggestions raised by said groups relates to the way in which people acquire credit, or more specifically, the questions in which they ask themselves, before committing to either a loan, credit card or mortgage extension.

An industry spokesperson suggested that it is of paramount importance for potential borrowers to ascertain whether their motive for acquiring credit is one of necessity or desire. The answer to either of these two questions is likely to greatly influence a consumer’s buying decision, and could even save the individual from possible financial difficulties, further down the line.

It would appear that one of the biggest problems for consumers is that many tend to bite off more than they can chew with regards to acquiring personal credit. Affordability should always be the overriding factor in any borrowers decision-making process, and quite simply, if a consumer cannot afford to comfortably repay their potential loan or mortgage, they should walk away.

In addition, a number of lending institutions have also started to tighten the reigns with regards to how they approve any potential applicant. It is thought that such institutions will look deeper into the individual’s situation, as a means to curb payment default levels.

Newly released information suggests that around 1/3 of all people aged between 20-30 are in jobs paying wages, that are deemed to be less than satisfactory.

As the cost of living increases and house prices continue to rise, unsurprisingly, financial worries are amongst the most common concerns for younger people.

Statistics suggest that the average wage for people who fall into the aforementioned age bracket is £17,300. It is also noted that 90% of first time buyers are also aged between 20-30, meaning, that as the average home is valued at £200,000, very few are able to attain an adequate home loan in order to fund their purchase.

Additionally, low wages are also causing many younger people to source other forms of credit such as personal loans, overdraft extensions and credit cards. It is for this very reason that the younger generations are the greatest contributors towards the nations current debt crisis.

Young Brits who earn less than the national average are taking on credit, which is then stretching them far beyond their financial limits, causing them to seek alternate debt solutions such as Individual Voluntary Arrangements. Experts suggest that the recent rise in demand for this tool can also be traced back to this age group.

A spokesperson for one of the UK’s leading debt advice charities commented that more should be done to help our countries lowest earners, and that the Government should also consider a further rise in the national minimum wage.

Although Christmas is still more than 3 months away, thousands of Brits have already starting to plan for the festive season.

Traditionally, Christmas is one of the most expensive times of year, and as you’d probably expect, it is also one of the most common times for consumers to run up high-end personal debts. In light of this fact, experts have advised any consumer who is already struggling with personal debt, to consider the possibility of debt consolidation loan as a means to lighten the pre season load.

Recent stats have revealed that the average family will spend anywhere between £200 to £1000 in the run up to the holiday season. The way in which budgets are spent does tend to differ, but the general consensus suggests that around 45% is spent on gifts for family and friends, with the remaining 55% spent on food, drink, decorations and party entertainment.

However, it is also noted that more and more families are also opting to go on holiday at Christmas time. For these families, the cost of Christmas can be scaled up considerably, with the average cost settling at around £1800. Popular Christmas destinations include Lapland, New York and strangely, Mexico.

Of course, the specific impact of Christmas is entirely dependant on socio-economic factors, which affect each family. The Holiday season presents a considerable burden to families living below the poverty line and for many; Christmas is the most dreaded time of year…from a financial perspective.

For this reason, a debt consolidation loan can be used to reduce a person’s monthly commitments, allowing them more room to manoeuvre with regards to covering the cost of Christmas. Also, if the person is a homeowner, they can also stand to receive a particularly good rate if they opt for a home loan.

In any event, it is wise to pay close attention to the annual percentage rate (APR) associated to all your credit agreements and choose a consolidation loan with an APR lower than the sum of your commitments.

According to a recent study, consumers in the UK who suffer with an adverse credit rating and/or bad debt are amongst the most likely candidates to allocate any spare funds towards their children’s futures.

One of the UK’s largest investment firms discovered that Brits who fall below the countries national average for take home pay, are sacrificing the possibility of having an annual holiday or a new vehicle, and will also put off buying a home for an average of 10 years all for the sake of their children.

Instead, such Brits will allocate around one and a half per cent of their annual take home pay towards child specific investment funds, private saving accounts and higher learning fees. On the other side of the coin, families who fall into higher income brackets are said to invest less than half of that devoted by lower income families.

One expert suggested, that parents who have come from tougher financial backgrounds appear to be more inclined to save for their children’s future as a means to provide a better quality of life or to ensure that they get the best possible start to adulthood. However, he also commented on the importance for all parents to set something aside for their children, regardless of their financial position.

Numerous consumer groups and public sector advisors have banded the prospect of introducing financial management classes into schools for some time. However, it has recently been announced that the Government plans to allocate approximately 12 million pounds towards the education bill, in order to fund the initiative.

As a means to better combat rising consumer debt levels in the UK, the classes will provide students with a real-world understanding of money management and will also teach the detriments that continuous credit acquisition can bring. The agenda is believed to encompass all types of credit management from loans through to credit cards and mortgages, and will also provide children with a thorough grounding in effective budgeting.

Commenting on the announcement, one expert suggested that now was the ideal time for such an initiative to be introduced. He stated that the Governments own wish to give all children a better start to their adult lives, as reflected through the introduction of child trust fund vouchers, would be perfectly complimented by the classes.

Theoretically, when children do approach the age where their fund will have reached maturity, they will be better equipped to manage their finances and will have a better understanding as to how their money should be spent.

It is also hoped that the classes will help to significantly reduce consumer debt over the next decade or so, as recent stats reveal the debt mountain to stand at approximately 1.5 trillion pounds high.