Policy Positions

Policy Positions



Credit Action strongly advocates:

  • Basic money education material being put in to libraries, doctors’ surgeries, rent and council tax offices, anywhere where it is available directly for those who need it. Many debt cases are triggered by 'life events' and material should be available to help people in such difficult circumstances such as relationship breakdown, job loss or illness. This type of resource provision would be highly cost effective and we believe would literally save the Health Service and companies millions of pounds.

  • All organizations that deal with people struggling with debt should ensure that all staff are trained and all letters sent out “audited” by an independent debt counselling or money education charity. A couple of major organizations already do this to very good effect.

  • People who are struggling with the lack of money should be helped through a properly funded Citizens Advice service. Those who have got into over-indebtedness because of borrowing should get free help through CCCS who get their support from the lending industry.

  • Lenders should take a much more pro-active approach to money education. Everyone benefits from having informed consumers. One way companies could do this would be to work together to produce some basic materials that would improve understanding. This could be followed by some form of “test”, along the lines of the Learn Direct scheme, which when passed would lead to the incentive of people being able to borrow at cheaper rates in the future. This is exactly the same principal as reductions in car insurance for those who have taken the advanced driving test. Credit Action believes that this would benefit the lenders, as they would have a more informed clientele less likely to default on their loans. Borrowers would equally benefit from being more informed and having the incentive to pass the test so they could borrow more cheaply in the future.

  • For millions of people in the UK credit is extremely useful and helps smooth out the peaks and troughs of everyday life. It is vital though to help everyone make informed decisions and avoid the pain and misery that over-indebtedness undoubtedly causes. With over ten million adults in the UK currently having numeracy skills of an eleven year old or less, the need for financial education has never been greater.

    Credit Action is a member of the campaign to end Child Poverty. Visit www.endchildpoverty.org.uk to find out more.

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