In the United Kingdom

There is a great lack of financial education

Over 25% have no idea of how much they earn or spend in a week

Consumer debt is increasing at £1m every 4 minutes

We are the worst savers in the whole of Europe

Households debts is constantly increasing

So many people are still paying for the last Christmas a year after.

Up to 30% of holidays are paid on credit cards

Financial education will change your attitude to money, it will help to reduce the misery caused by poor money management.

Managing your money requires hard work, it is getting more complex in today’s world, but basic education can save you a lot of pain and hardship, it will teach you how to control your finances and keep money from controlling you.

We live in a financially dishonest world, so many people would rather live on other people’s money rather than not have. So many would rather struggle through rather than let people know they cannot afford it.

Debt has become a really big issue because of it’s impact on lives, relationships, marriages, families etc.

Let us look at why people go into Debt

  1. Low income
  2. Mortgage
  3. Starting a family (children
  4. Wedding
  5. Illnesses
  6. Loss of Job/self employment
  7. Poor money management

Out of all these poor money management counts for over 50% of why most people get into debt.

Intelligent Borrowing/ Unwise Borrowing

These are a few of the things that make borrowing intelligent

  1. The borrower has a legal and moral alternative to get out of the obligation when they want to.
  2. The loan is for something that will increase in value unlike a movie ticket, dinner, a designer outfit etc
  3. The loan is for something that has a reasonable life expectancy of more than 3 years as against something that will go down the drain before the bill comes.
  4. The interest rate is reasonable.

An unwise borrowing fails to fulfil all the above.

Wise Borrowing

  1. Requires plenty of time to think
  2. You are not likely to go beyond your limit but unwise borrowing can put you in a big trouble in the twinkle of an eye.
  3. Requires a lot of research and thinking, unwise borrowing will not allow you to think, just sign on the dotted lines.
  4. Whatever you do spend only what you have (do not make a habit of spending money that is not yours, it soon becomes a trap)


Impact of Debt

  1. Debt promotes discontentment 1 Timothy 6:6, Hebrews 13:5 Philippians 4:12

Buying things with money you do not have is a sign you are not contented with your income, you rather not wait or be patient.

  1. Debt makes an uninformed assumption about the future, by agreeing to buy and pay in the future you are making assumptions about your health, money, job and ability.
  2. Debt requires you to transfer your future wealth to your creditors instead of using it to build your future.
  3. Debt helps you to make other richer at your expense while making yourself more dependent.
  4. Debt pays for things at higher prices
  5. Debt limits your options and sometimes eliminates them altogether.


1st step towards slimming down your debt

Take Stock Make a Budget

Take stock of your income and debts. How much do you have coming in and going out.


it will help you understand how much you earn

it will help you bring your spending under control

it will help you set your money aside to pay off your debt

it will help you to prioritise your debt and know which debt needs to be paid up first

it will help you to start saving or save more


A budget will give you an accurate picture of your financial situation, it makes your money go further, it imposes control over your spending, it prevents you from running up substantial debts. It will help you avoid financial stress in your life and family, it will help you achieve your life’s plans and goals.


Click on the link below for tools to help you with making a budget

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