Conservative Debt Management Proposals
Shadow Chancellor George Osborne unveiled a plan to tackle soaring debt and financial exclusion at a recent Conservative Debt Summit meeting in London. Many of the proposals in this plan have been proposed by debt management organizations for some time. This plan will be researched by the Conservatives in collaboration with the Citizens Advice Bureau and other organisations.
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.”
Consumers sign up for these ‘impulse buy’ items without understanding the ramifications of the store’s program.
The summit examined a series of proposals. The plan may include a seven-day cooling off period for store cards. This would give them the opportunity to really think about their spending habits.
There is also a request for credit card providers to inform the public, in layman terms, about 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 summit audience which included leading figures from 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 that mimicked the government’s plan to encourage financial education at the grade school level.