Conservatives plan to tackle soaring debt

At a Conservative Party Debt Summit in London, Shadow Chancellor George Osborne revealed a new blueprint to tackle soaring debt and financial exclusion. It includes a possible seven-day cooling off period for store cards. Many people sign up for such items in haste and repent at their leisure. This would give them the opportunity to really think about their spending habits. He went on to say that this isn’t just  problematic for people who find themselves caught up in rising debts, but rather it could be a problem for everyone. He also said “An economy built on borrowed money is an economy built on borrowed time.”

The summit examined a series of proposals. As well as the aforementioned cooling off period for store cards (where the customer would in fact not be allowed to use the card for the first seven days) there is also a request for credit card providers to inform the public more clearly about any charges involved and a proposed introduction of a debt action plan to encourage greater corporate and social responsibility.

This last proposal was directed at the diverse audience attending the summit which included leading figures from across the charity, consumer protection, and financial services sectors.

Mr Osborne addressed them directly when he spoke of the “social responsibility” of debt and financial exclusion, urging the government, organisations and individuals to work together.

The summit also looked at a proposal for all schoolchildren aged between 11-18 to be taught how to manage money and financial matters.  This is going to be researched further with the Conservatives collaborating with the Citizens Advice Bureau and other organisations.

According to their policy Director, Citizens Advice dealt with 1.4 million debt problems last year alone and are keen to introduce this initiative to address the increasing debt problem. They feel strongly that in order to avoid getting into unmanageable debt people must have more information at hand and that the providers should look more closely at a person’s ability to pay without giving them credit carte-blanche.