Debt management ‘best in parents’

UK parents are the best at managing their debts, according to new research by one organisation.

ClearDebt found that individuals with children who owed money reduced their unsecured debt by one per cent between January and June of 2009.

In comparison, indebted people without kids increased their debt by seven per cent.

According to the statistics, those that are self employed are suffering the worst during the recession, with the typical person who works for themselves in debt to the tune of £40,078.

Marketing director of ClearDebt Andrew Smith said the government needs to pay more attention to this demographic as it could be a “major accident waiting to happen”.

He remarked: “Small entrepreneurs may be keeping their businesses financed through expensive credit card borrowing and personal unsecured loans, whilst seeing their ability to repay plunge.”

Recently, Tom Howard of the Consumer Credit Counselling Service advised people in debt on their credit cards to budget their way out of trouble.

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