Matter of life and debt. The scale of the problem Do the maths but dont panic Put an escape plan in...

Matter oflife and debt

• The scale of the problem

• Do the maths but don’t panic

• Put an escape plan in place

• Three action steps to better finances

• Consider joining a credit union

• Increase income

Matter of life and debt - sections

The scale of the problem

• 18 per cent of adults in Britain have £10,000 or more of unsecured debt, equivalent to 8.2 million adults (Credit Action)

The scale of the problem

• 18 per cent of adults in Britain have £10,000 or more of unsecured debt, equivalent to 8.2 million adults (Credit Action)

• Two million British consumer can’t actually quantify how much debt they’re in(Unbiased.co.uk)

Do the maths but don’t panic

Do the maths but don’t panic

• Add up all the amounts owed, including credit card bills, mortgage or rent arrears, short term loans, etc

Do the maths but don’t panic

• Add up all the amounts owed, including credit card bills, mortgage or rent arrears, short term loans, etc

• Citizens advice can help with the numbers – www.adviceguide.org.uk

Put an escape plan in place

Put an escape plan in place• Set priorities as to how cards and loans

will be repaid, starting with credit cards in order of APR

Put an escape plan in place• Set priorities as to how cards and loans

will be repaid, starting with credit cards in order of APR

• May be necessary to renegotiate payment terms – advice at www.creditaction.org.uk

Put an escape plan in place• Set priorities as to how cards and loans

will be repaid, starting with credit cards in order of APR

• May be necessary to renegotiate payment terms – advice at www.creditaction.org.uk

• Condolidate debt – without taking out a higher loan than necessary

Three action steps to better finances

• Cut spending focusing on essential items to formulate a household budget

Three action steps to better finances

• Cut spending focusing on essential items to formulate a household budget

• Understand interest free credit – it often just delays the process of sinking into debt

Three action steps to better finances

• Cut spending focusing on essential items to formulate a household budget

• Understand interest free credit – it often just delays the process of sinking into debt

• Ask ‘what’s in it for them?’ – as financial institutions are there to make money

Three action steps to better finances

Consider joining a credit union

• Run by leaders in the community and monitored by a government body

Consider joining a credit union

• Run by leaders in the community and monitored by a government body

• Membership only costs a few pounds, and accounts can be set up with minimal deposit

Consider joining a credit union

• Run by leaders in the community and monitored by a government body

• Membership only costs a few pounds, and accounts can be set up with minimal deposit

• Safe borrowing - linked to level of savings deposited with credit union

Consider joining a credit union

Increase income

• Only way to pay for higher levels of debt is to increase income

Increase income

• Only way to pay for higher levels of debt is to increase income

• However – think, there may be more to life than increasing lifestyle costs and amount consumed

Increase income

More information• ABCUL – Promoting Quality Credit Unions

www.abcul.coop/page/index.cfm

• Citizens Advicewww.adviceguide.org.uk

• Consumer Credit Counselling Servicewww.cccs.co.uk

• Credit Actionwww.creditaction.org.uk

• Money Basicswww.moneybasics.co.uk

Compiled by the Church of EnglandPhotos supplied by www.freedigitalphotos.net