the importance of debt advice colin kinloch 9 december 2013
TRANSCRIPT
The importance of debt adviceColin Kinloch9 December 2013
Our statutory role
Assisting members of the public with the management of debt,
Working with other organisations which provide debt services, with a view to improving
(i) the availability to the public of those services;(ii) the quality of the services provided;(iii) consistency in the services available, in the way in which they are provided and in the advice given.
Financial Services Act 2012
Causes of over-indebtedness
• Having a baby• Financing a home• Death of a partner• Redundancy• Sickness• Disability
Life events are the biggest trigger of
indebtedness
But macro factors can also influence attitudes and
behaviours• Increasing cost of living• Wage freezes• Reduced working hours• General lack of confidence• Reduced consumer spending
For some, it is a gradual change
• Cost of childcare increasing or children staying at home longer
• Maintaining a chosen lifestyle in a time of low rates of income growth
• Balance between luxury and necessity
For some, there is a general acceptance of
living in debt• Family and friends in the same
situation• Resignation that it will ‘always
be like this’
Sources: IFF User Needs research, YouGov Effectiveness research, MAS Foundation Research
Some are in debt due to poor financial
management• Too much owed on credit cards• Still paying back a large personal
loan• Poor budgeting• Depending on payday loans• Missing creditor payments
And for many, a new life event is coming……
Debt in the UK – the overall view
Sources: Public Knowledge / Experian Segmentation Research
• Estimate that 8.8m people are over-indebted• 75% are under 45• Half have a household income <£20k• 41% work full time• 48% own their home (with or without a mortgage)• 27% rent privately• 66% find keeping up with bills a heavy burden• 64% have fallen behind with credit commitments in
the last 3 months• 76% would describe themselves as being in debt• 42% have been chased by creditors in last year• One third are young people
17%
10%
12%
16%
23%
16%
6% Already getting advice
Planning to get
Thinking about getting
No plans, but might consider
Consider if situation got worse
Cannot see ever getting advice
Don't know
PRISON & PROBATION
Where we work
Source: Optimisa advice effectiveness research
HMP Bedford,HMP Birmingham (Winson Green) HMP HewellHMP Featherstone HMP ShrewsburyHMP BlundestonHMP Bure
YOI BrinsfordYOI Swinfen Hall
Satisfaction
Source: Optimisa advice effectiveness research
Overall situation
Source: Optimisa advice effectiveness research
Positive impact
Source: Optimisa advice effectiveness research
Actions
Source: Optimisa advice effectiveness research
