Educational charity ifs University College has called for a greater focus on financial education to tackle problem debt.
Earlier this month the debt charity StepChange claimed debt was costing the British economy £8bn a year due to the burden it put on services.
It broke the cost down as follows: £2.8bn spent on housing as people fall behind on their rent or mortgage payments, £2.3bn lost in productivity due to the the stress and anxiety caused by debt, and £960m to treat the mental health problems brought on by debt.
Added to this is £790m for the cost of relationship breakdowns, £658m in elderly care costs, plus £800m-worth of additional costs including the failure of small businesses, the costs of children taken into care, and poorer educational and employment outcomes.
