Recent survey results have shown that there is a great need for financial life skills. People need to have a greater understanding of how money works in order to get on the road to financial wellness. Less than half knew what a credit report was and more than 77% mentioned that they didn't look at the rates and fees they would be charged when completing credit applications. 67% were aware that they could get a free credit report once a year.

With a distinct lack of knowledge when it comes to financial implications, financial life skills are seemingly lacking in the majority of people. The CEO of Debtbusters mentioned that this lack of knowledge meant that there was a correlation between the inability to save and the accumulation of debt. With little to no money available for these people to save, the more debt they would accrue - as without the means to generate even a little money for savings, these people suffer when emergency expenses crop up - they simply don't have the extra money available to use.

With consumers being left in the spiral of rising living costs and poor debt management, it is almost impossible for them to have a better economic outlook. Consumers need to be taught essential financial life skills to ensure they are aware of all financial implications and can make decisions based on this. Whilst many are aware of good debt choices such as buying a house or getting an education, the lack of knowledge surrounding bad debt and the credit rates attached is appalling. A better financial education needs to be made available so consumers are aware of the financial choices they are making and how and when to rectify them.

The fact that 67% of consumers were aware that they could get a free credit report once a year but more than 77% don't look at credit rates is really shocking - how many are actually checking their credit report? This is an important financial step as checking your credit report can help you to identify what steps need to be taken to improve their overall score and it also gives them the opportunity to rectify any errors that may be up on their report. Even more shocking is that less than half actually know what a credit report is!

Whilst the survey results from Wonga aren't all that surprising, their CEO believes it's important that consumers are educated about various financial issues related to credit and how to get financially fit. Savings can help prepare for unforeseen circumstances but so many are not in a position to save so educating them on credit issues and aiding them in getting financially fit is a step in the right direction. van Aswegen also believes that collective responsibility needs to be taken for the financial health and wellbeing of consumers. Wonga SA's responsible approach to credit provision is the first step towards a sustainable and stable credit market in the country.