We hear more and more frequently that we want to encourage individuals of all ages to be more willing to open up and engage with appropriate audiences when facing financial difficulties – we are constantly looking at new and innovative ways in which we can facilitate opening the dialogue, through multiple channels, devices and platforms. For me though, one of the reasons this engagement is still a challenge is that it is not until such difficulties are faced do people start the search for help, look at the options available and the choices they can make. Through education from an early point on such topics – when the situation arises, if it does, then we have empowered and equipped that person more appropriately to cope and have gone a great way to removing stigma and normalising the situation.

Why are we not teaching young people as to what an APR actually is and what this means to the monthly balance on the new shiny credit card you have been approved for. What happens when only the minimum payment is made each month. Your options with a lender should you fall into arrears and what happens should a lender make the decision to default your balance.

Explaining what a credit file actually is – how it is updated and what is means for you. The impact of negative information on your file and importantly how long this is present for.

And, should the situation that you have found yourself in be one that means your debt is passed to a collections company, what this actually means for you as an individual. What options you still have and importantly the choices you can still make. How the situation can still be positively managed to a satisfactory conclusion and that the situation is not permanent.

Education removes stigma – it breaks down barriers and most importantly empowers the educated to make well rounded and informed decisions. Teaching people how to manage debt of any form once they are actually in that situation is like working out where to fit the fire alarm once the house is on fire!

Now the 64,000 dollar question……… how do we introduce such education, who delivers it, when do young people receive it! For me it should form part of the National Curriculum but as former teacher I know that this will never happen. So instead, I feel it’s for us to do what we can, as experts within the financial services industry. Whether we are a mother or a father, an uncle or an aunt, big brother, sister or maybe even a god-parent I am sure we all have young people in our lives that over the coming week we could start a dialogue with as what do they really understand about credit and debt – a conversation that can help build their knowledge and build a connection that should they start to find a situation that is becoming negative they have a person to turn towards and start a conversation with.