I once spent an afternoon in an academic bookshop looking at some book on ratios in nature. The book fascinated me and yet I shied away from a future in mathematics.

One thing I remember from reading some parts of the book is that ratios occur throughout nature and, without them, we as humans would be pretty lost. We wouldn’t be able to calculate a circle’s circumference to its diameter, eg. This would have implications throughout every sphere in our lives: architecture, science, and economics. And there are many other things that ratios apply to but let’s concentrate on the economical aspect and let’s be specific and only concentrate on how that relates to a hypothetical person’s financial life.

A debt-to-income ratio is not the only figure that needs attention but it is perhaps one of the more important ones in anyone’s financial portfolio analysis. This is true because it gives a snapshot of how much the person owes to various creditors versus how much income they are generating every month through a variety of other sources.

While it’s true that no single number should be used to diagnose the state of someone’s finances and that the analysis should instead focus on the bigger picture, the amount of debt needs to be within reason. It is better to not include potential future growth, future salary increases, and potential future book deals in spreadsheets that try to give a glimpse of how healthy your finances are.

Is there an acceptable level of debt that can apply to all individuals, never mind their age, income level or education? The easy answer is ‘yes and no’. Every person has a different tolerance for debt so don’t wish you had your neighbour’s debt levels; your own debt might not feel manageable but chances are that your neighbour’s payments on their new 4WD will give you an opportunity to experience your local emergency room.

It is important, however, to maintain debt levels that you can afford. Aim to keep your debt within a range that you feel comfortable with: some might feel comfortable with 10% of their monthly income while someone else, who has different needs, feels comfortable enough spending 20% of their monthly income on their debt.

Keep an eye on what percentage of your income goes towards servicing debt and you should be well on your way to a retirement that won’t force you to rely on your children or on social services.

It may start out all moonshine and roses, purchasing clothing, cots, prams and all the other stuff that goes along with welcoming a new baby into the world, but what many parents do not realise is the actual cost of raising a child. And by the time your child walks out of the gates of university, you as a parent would have spent more than £200,000 on raising him/her. But for some parents the cost does not stop there, as more and more young adults are still depending on their parents thanks to a competitive job market.

Chances are, if parents actually knew the cost of raising a child, they probably would have thought longer and harder before making this commitment. We all want to give our children the best of everything, but money, or lack thereof, often prevents us from doing this.

The latest debt news reveals a recent study which provides us with the average, estimate cost of raising a child these days.

On average, the cost of raising a child to the age of 21 is £201,809, according to the latest report. Divided by 21, parents have to cough up £9.61 a year to feed, clothe and educate their kids.

And this cost does not even include private school fees, which is only paid for by 7% of UK families. Despite this, even the additional charges on state education can set families back thousands a year. This includes paying for uniforms, sports equipment, and other essential school supplies. On average, education costs the most for UK families, adding up to an average of £52,881.

In the latest debt news it is revealed that the cost of raising a child has increased dramatically in the past few years thanks to inflation-busting 4% since the beginning of the year. That means the cost has risen by 43% since 2003.

Another pricey factor for families is childcare. Childcare contributes to a hefty dent in families finances, with costs rising by 66.5% since 2003 – this is the single biggest rise in any of the categories.

Of course some cynics will beg to differ, and insist on there being a significant grey area to consider. For example, they argue that will private schooling is expensive; there is significant help from the government which the survey does not account for.

Also, it is argued that higher education fees, while pricey, should not be paid for by the parents, as sufficient student loans are available. This means that students, once they have attained their respective degrees and started their careers, should pay off their student loans themselves.

While there may be a grey area, this is just a general idea of the cost of raising a child in the UK these days.

It may be good to know that it is not just us mere mortals who struggle with debt. There are more than a few celebrities in the UK who are not capable of making the right financial choices. Many have learnt the hard way that being rich and famous does not come cheap. So next time you complain about paying your ‘average Joe’ bills, think of these celebrities who face similar challenges, only on a broader scale – with the public watching.

Kerry Katona:

This former Atomic Kitten star has been through quite a bit in her 30 years. Not only did she have to deal with personal and health problems, financial issues have been a prominent factor in her life. The debt problems stem from a decline in her professional life. After quitting her stint with Atomic Kitten, Katona moved from reality show to reality show trying to find her niche in the entertainment industry. But, after many failed attempts to break into the industry, Katona was declared bankrupt at the High Court in London after failing to pay the final £82 000 of a £417 000 tax bill. In December of 2009, her £1.5 million home was repossessed after failing to make mortgage payments.

Shane Ritchie

Shane Ritchie may be best known for his role in popular Brit soap opera EastEnders, but for many he will be known as the actor who could not control his finances. His reputation for financial problems indeed precedes his acting talents. His money troubles included the sale of his dream home after failing to keep up with the £8,000 monthly payments. He has, however, managed to dodge the bankruptcy bullet thanks to friends covering his debts and saving his financial reputation.

Mike Read

Mike Read is a disc jockey who allowed his finances to run away with him. Read declared bankruptcy not once but twice, the latter occurring just last year. The second bankruptcy forced Read to sell his beloved collection of records and music memorabilia. Even this didn’t help much, as the record collection sold for only one tenth of its £1 million estimate. The remainder of the collection is being sold by the liquidators on ebay.

Joe Swash

The cast of EastEnders should take note. Joe Swash, an EastEnders cast member seems to have the same lack of money management skills as fellow cast mate Shane Ritchie. Not only was he a popular soap star, he also hit it big on reality TV winning the British show ‘I’m a Celebrity…Get Me Out Of Here!’ Unfortunately, money doesn’t equal responsibility, leading Swash to file for bankruptcy after failing to pay a £20 000 tax bill and debt consolidation loans.

Matt Goss

Known as one of the Goss brothers in the British pop sensation Bros, Matt Goss achieved fame and fortune while still a teenager. But thanks to years of squandering, Goss came close to bankruptcy by the end of the Bros reign as pop stars. Matt has since left the UK for the bright lights of Las Vegas and is apparently more careful about how he handles his money.

The benefits system in the UK is build on noble principles. It provides a valuable safety net for those who find themselves in fiscal dire straits. The recent economic crisis has shown us that anyone can be affected by a sudden change in financial circumstances. In particular, loss of employment is a common cause of this extremely difficult situation and will often result in an inability to meet debt repayments. Of course, in addition to the benefits system, help and advice from companies like Debtsolver can help you to solve the debt problem and see out the period of unemployment.

However, there are those that exploit the benefit system and perpetuate our national debt problems, rather than making an effort to solve them. The lengths that some people will go to in order to avoid working are staggering, as is the cost to the British taxpayer. That puts more pressure on all of our finances. Here is a top ten of some of the most scandalous abuses of the British benefits system and an estimation of how much they cost (according to comparison site TotallyMoney.com).

1. Almost half of the residents of Falinge, in Rochdale, are currently claiming incapacity benefit. Across the country, over two and a half million are doing the same. That’s nearly 5% of the UK population and it costs the UK taxpayer over £40k a week.
2. Islamic cleric received more than £1million worth of legal aid, while claiming £680 each week in state benefits. Although he actually owned another property that generated £130,000 in profit, he lived in a £550,000 council house.
3. Having raised all 13 of her children on benefits, the thought of having to find work, now that some are leaving home, did not appeal to one woman. She’s currently estimated to be “earning” over £27,000 in benefits, which is comparable to a salary of £37,500.
4. A family of 4 with a combined weight in excess of 80 stone have maintained that they are too big to work. That means an estimated £22,000 a year in benefits. One daughter claimed, “It’s not our fault we can’t work… no one wants to employ fat people.”  She turned down a job offer on live radio a month later.
5. A couple invented 16 children to fraudulently claim more than £75,000 over four years. However, despite being imprisoned for fraud, it was claimed that this was, in fact, a public service; exposing loopholes in the benefits system.
6. An 18 year old, who left her parents’ £1million home at 14 to have a baby, has recently given birth to twins –to a different father. She is now claiming that her £16,000 a year in benefits is not a sufficient sum to live on; despite the median salary in the UK being roughly £20,000.
7. A 29-stone mum on benefits is too busy to feed her 8 month old triplets healthy food. Existing on nearly double their recommended calorie intake, the children are only allowed vegetables once a week.
8. The strongest man in Cornwall in 2007 took home the title and £300.  However, he was also taking home £40,000 in disability payments at the time and holding down a job. Naturally, he didn’t inform the authorities because it would’ve cost him his housing and council tax benefits.
9. A couple claimed £40,000 worth of benefits while they sailed around the world in a luxury yacht. While too sick to work they enjoyed scuba diving in Kenya and swimming with dolphins in the Canary Islands.
10. While seeking asylum in the UK, Iranian national Massoud Montazery claimed £25,000 in benefits. However, he also had over half a million pounds in a secret bank account, drove a Merc and dressed designer.

British Prime Minister David Cameron outlined his plans to solve the country’s debt problem but has emphasised the difficult decisions that are yet to be made with regard to state pensions and benefits. In short, the Great British public are to expect widespread, deep and difficult cuts to public spending.

Cameron has described the task of tackling the UK’s debt problem in no uncertain terms and is obviously looking to instil the severity of the situation. However, he also emphasised that these cuts in public spending would not damage those at greatest risk and in greatest need of support at such a difficult time. That being said, the budget announcement cannot afford to be too divisive with respect to wage bands across the country. This alludes to a very difficult balancing act in curing the country’s financial ill health.

Up to this point, the Conservative-Lib Dem coalition have tabled a budget for the 22^nd of June, in which they are expected to build on the cuts of £6.2billion that have already been announced. Apparently, the state of the country’s finances was even worse than the new Prime Minister had imagined when taking office. In his own words, the UK is in “Debt Crisis” and he laid the blame for this situation squarely at the feet of the Labour government.

Solely in terms of interest payments on the national debt, the UK is set to spending £70billion within five years. For any of us that have been paying an interest only deal on a mortgage or been going on paying the minimum repayment amount to our credit card, the sheer waste of money will be immediately apparent. As we at Debtsolver have always reiterated, dealing with your debt as quickly and efficiently as possible will help to save you money. As ever, the sooner you face up to the problems, the easier they are to solve.

There are then the knock-on effects to consider, like increased interest rates and the general drop in the level of public services on offer, as taxes are diverted to pay the interest on our national debt. Of course, as promised in the Conservative manifesto, NHS spending and international aid will be protected for the cuts. Whether this remains viable in the long-term is yet to be seen.

In the past 5 years, we’ve seen the loss of 100,000 civil service jobs and the union Unison have viewed these public sector spending cuts as specifically targeting those on a lower income, dependent on these public service, like healthcare and financial support. Unison viewed the debt as a problem that was essentially caused by the wealthy banking and financial sectors but was set to be paid for by those that were most vulnerable.