Matter of
life and debt
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
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
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
Consider joining a credit union
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
Increase income
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
More information
• ABCUL – Promoting Quality Credit Unions
www.abcul.coop/page/index.cfm
• Citizens Advice
www.adviceguide.org.uk
• Consumer Credit Counselling Service
www.cccs.co.uk
• Credit Action
www.creditaction.org.uk
• Money Basics
www.moneybasics.co.uk
Compiled by the Church of England
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