Consumers need to be aware of interest rates to help them avoid debt problems

Consumers concerned that they may end up needing a debt solution if they borrow too much should check the interest rates on any credit they obtain.

This advice applies to anyone thinking about taking out a credit card or a loan as the interest rate could help contribute to debt problems in the future.

Richard Sorsky, money advice co-ordinator at the UK Insolvency helpline, stated that many people seeking debt advice have been caught out by interest rates.

He said: "People still don't understand the interest element. Although it's well stated, people are always with the attitude, 'I don't care about the interest rate because I always pay my debt off every month anyway'."

However, this attitude can be dangerous as people may intend to pay off their debts in full each month but an unexpected expense may prevent them from doing so one month, Mr Sorsky added.

According to unbiased.com, Brits will spend the first 45 days 2011 working just to pay off the interest on their debts.
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Around 430,000 students will be given a manual about how to manage their money and avoid debt problems in the process.

Finance charity Credit Action intends to give its guide on student finance to young people planning to attend university in the 2011/2012 school year.

The average student is expected to graduate with debts amounting to more than £23,000 so the charity has created a guide to inform youngsters about the financial support available, how to budget and how to save money.

This could help would-be students learn how to stay in control of their money and help them avoid debt problems while at university.

Joanna Parsley, associate director of Credit Action, said: "Getting this information and guidance into students' hands before they begin university is key as it allows them to prepare financially, so their university experience can get off to a smooth start."..

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