tackling debts and managing money wisely :

Tackling Debts and Managing Money Wisely :

towards  effective, innovative and  sustainable money advice

Joanna ElsonChief Executive, Money Advice Trust

23rd June 2011

MAT takes three roles in the provision of money advice…

giving advice supporting advisers Improving the

debt and credit environment

1991

2011

• Shift towards partnership working across UK

• Deepening understanding of the causes of debt

• Establishment of telephone advice

• Response to 2008 global economic crisis: internet tools, triage, Cashflow, new remedies...

• clients experienced improved knowledge and confidence in managing money (83% National Debtline clients)

• advice services confident training improves outcomes for their clients (50% attended at least two courses)

• repossessions prevented at cost of £16000 per household (estimate: Department for Communities and Local Govt)

• Fewer doctor and hospital appointments needed (40% National Debtline clients)

Money advice works….

Household debt will rise to £2.1 trillion or £84,000 per household by 2015

Office of Budget Responsibility revising upwards their forecasts, April 2011

Problem debt affects around 5 million people across the UK

Dr John Gathergood,Nottingham University2010

Forecast demand for debt

advice from free-to-client sector 2010 -

2015

Interest rate and cost of living increases

Poor and predatory practice from fee-charging companies

Changes to infrastructure and

environment for debt advice

provision

Challenges and innovationsDemand

Poor Practice

Infrastructure changes

Optimal channel strategy

Effective, innovative and sustainable free services

Money advice beyond traditional settings

Effective, innovative

and sustainable

money advice

Cost Effectiveness

Needs of the client

Locally based but UK wide services providing effective and sustainable

advice.....

• Consortium of Local Advice Services South Yorkshire

• East End CAB

‘Good advice is worth every penny we can possibly spend on it’

Baroness WilcoxUnder Secretary of StateHouse of Lords3 May 2011