DMP, IVA or Consolidation Loan?

Debt repayments are totalling at a rate of £3,000 per second, it has been claimed, although it could be said there may be light at the end of the debt management tunnel.

According to the Liberal Democrat leader Nick Clegg, young people need to start being taught how to organise their finances effectively to avoid the economic trap that the UK has sunk into.

Total personal debt owed has risen by £1 trillion since Labour came into power in 1997, he claims, a figure that may urge some households into putting their financial future on to a more stable footing.

Commenting on the credit crunch and spiralling debt, Mr Clegg told a Youth Parliament event: "One of the reasons why the economy's in such a state at the moment is because of all this debt. It is our young who will inherit this legacy of debt. "

He added that the nation has been addicted to debt, although parents who do not want their children to inherit a poor financial future may want to consider a consolidation loan, which could merge money owed into one monthly payment.

It was recently reported by The Children's Mutual, that three-quarters of mums and dads have initiated their kids' bank accounts.