There was an article recently about how young men are far more likely to lie on a credit application than young women. This article provided some startling statistics about how common this actually was reflected how in recent time there has been a massive increase in this behaviour.It goes without saying that you should never lie on a credit application because doing so is the same as obtaining funds under false pretences. It's a fair conclusion that for these people are prepared to take such a risk, there would have to be a very good reason. This said, it's unlikely that the credit application would be for a purchase, moreover its likely that its for some sort of debt consolidation. This theory is supported when you consider that the potential consequences of lying on a credit application may appear more favourable than being pressured by creditors and debt collectors.

Additionally, it reflects an increasing level of financial desperation / hardship within a specific demographic, illustrating quite clearly how some people would go to extraordinary lengths to obtain debt relief.

There are a number of ways to address this problem.

Firstly, prevention is far better than the cure. Education about credit and debt management should be an important part of the school curriculum. As stated in previous articles, debt (and all the pressures that surround being in debt) places the greatest amount of pressure and strain on Australian working families. Debt / money problems undermine family relationships. It's important that proper debt management is taught in school in order to equip people with the necessary tools in order to manage their finances effectively.

Next, credit providers must take some responsibility to ensure that people can adequately afford the cost of credit. It's not enough to check an applicant's credit file and then automatically assume they can afford the repayments. We believe a rigorous examination of an applicant's budget should take place. Most credit providers would baulk at this suggestion and say that the cost of implementing such a scheme would be enormous and civil libertaians might say that to examine a person's budget in such a way would be intrusive. Nevertheless it's an ideal. Presently you can be approved for a $4000 credit card online, without a credit check. Debt Fix believes this sort of situation is the opposite extreme of what we feel is responsible.

Finally, there should be a greater awareness of the options available to people struggling with debt. At present, most people believe the only way to become debt free is to "buy" your way out of debt with a loan. This approach does not attend to the issue of "paying" the debt, you simply transfer bad debt for different bad debt. It doesn't attend to the issue of developing new spending habits and certainly doesn't attend to the issue of encouraging better debt management.

Debt Fix is a company that actively encourages the promotion of greater debt management awareness. Debt Fix has developed a terrific budget planning tool for people to track their income and expenses. Debt Fix helps people struggling in debt through free debt assessments and providing free advice and options for people looking for a solution to manage their debts more efficiently.