"(because of failings of education due to lack of funding)"
I think there are other reasons for the failed education. Even with more money, I doubt they would prioritize it. Most schools offer personal finance as an elective. It should probably be part of the core curriculum. Even then, you will have students that are unintered or don't apply themselves.
The easy fix is to reign in the lending by setting low limits that only increase with good payment history and cap lifetime interest payments as an percentage of the original purchase, like 200% adjusted for inflation.
Want a credit card? Here's one with a $250 limit. Didn't pay it back? Now you'll owe $500 adjusted for inflation, and you can't get another card or more credit unless this one is paid back.
The political/legal ability to do this is more questionable.
I don't know how common it is. I have heard of people making interest only payments for a long time, or taking years to pay off credit card debt. At something like a 20% rate, it's possible to pay back double the original purchase price if it's taking years to pay it off. In general it's probably fairly rare, just like the people who ruin their lives by carrying over a high balance to begin with.
Anecdote, but I was required to take an economics class in high school with the basic one being consumer economics which taught me all about personal finance.
I think there are other reasons for the failed education. Even with more money, I doubt they would prioritize it. Most schools offer personal finance as an elective. It should probably be part of the core curriculum. Even then, you will have students that are unintered or don't apply themselves.
The easy fix is to reign in the lending by setting low limits that only increase with good payment history and cap lifetime interest payments as an percentage of the original purchase, like 200% adjusted for inflation.
Want a credit card? Here's one with a $250 limit. Didn't pay it back? Now you'll owe $500 adjusted for inflation, and you can't get another card or more credit unless this one is paid back.
The political/legal ability to do this is more questionable.