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FINCAN's slides on the impact of financial exclusion and high interest debt on families
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Alison Baxter
Regional Development Manager, Fincan
Fincan – Who are we?
VisionWe are the North East voice for financial well being
MissionWorking together to influence policy makers and to inspire and support members to improve the financial wellbeing of people in the North East
Financial Exclusion –
The Practical Impact on Families
Online payday loanBorrow £230 over 30 days Repay £306.15
Pawnbroker Borrow £111 over 5 months Repay £160.39
Home Collected Credit Borrow £300 over 12 monthsRepay £546Total borrowed: £641, Total interest to repay: £371.54
What is the cost?
X Box One FIFA Bundle:Argos - £349.99Brighthouse - £1300
Toshiba 40” 3D TV:Argos - £368Brighthouse - £2106
What is the cost?
•Average household debt £6155
•297 people are made insolvent every day
•Citizens Advice Bureaux dealt with 531,842 debt issues last year
Debt
•Work
•Relationships
•Health
•Use of credit
•Illegal loan sharks
•More exclusion, less money.
Impact
•Costs £100 a year more for fuel to pay bills in cash
•Extra charges for cash handling
•Cost of travel to outlets to make payments
•22% more spent on mobile phone pay as you go contracts
•Barrier to accessing labour market
•Cost of pre-payment cards as an alternative
Banking
•No access to Home Insurance
•No savings
•No access to mortgages
Financial Products and Services
Capability
Financial decision making
Budgeting
Resilience
Promote and support alternatives to high cost credit:
•Credit Unions and CDFIs
•Smarterbuys; The Store;
Solutions
Financial Capability Training:•Barclays Money Skills; Money Mentors; Citizens Advice Financial Skills for Life;
Debt Advice Services:Stepchange; National debtline; CABx; Independent Advice Agencies; Housing Provider services
Solutions
Solutions
www.fincan.co.uk
Contact:Alison [email protected]: 07870749349