1. The importance of debt advice Colin Kinloch 9 December 2013

2. 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

3. 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……

4. 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

5. PRISON & PROBATION

6. Where we work Source: Optimisa advice effectiveness research HMP Bedford, HMP Birmingham (Winson Green) HMP Hewell HMP Featherstone HMP Shrewsbury HMP Blundeston HMP Bure YOI Brinsford YOI Swinfen Hall

7. Satisfaction Source: Optimisa advice effectiveness research

8. Overall situation Source: Optimisa advice effectiveness research

9. Positive impact Source: Optimisa advice effectiveness research

10. Actions Source: Optimisa advice effectiveness research

11. colin.kinloch@moneyadviceservice.org.uk