Matter of life and debt

1. Matter of life and debt

2. Matter of life and debt - sections • 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

3. 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)

4. 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)

5. Do the maths but don’t panic

6. 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

7. 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

8. Put an escape plan in place

9. 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

10. 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

11. 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

12. Three action steps to better finances

13. Three action steps to better finances • Cut spending focusing on essential items to formulate a household budget

14. 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

15. 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

16. Consider joining a credit union

17. Consider joining a credit union • Run by leaders in the community and monitored by a government body

18. 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

19. 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

20. Increase income

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

22. 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

23. More information • ABCUL – Promoting Quality Credit Unionswww.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 England Photos supplied by www.freedigitalphotos.net