Debt solutions expert and DEMSA member, Atlantic Financial Management is calling on the Government to tackle the root causes of people becoming more indebted, following last week’s Commons Debate on debt advice and debt management. The debate focused on pay day loans, debt advice and debt management services, but failed to acknowledge the current charges made by high street banks for unauthorised overdrafts. From Atlantic’s experience of helping indebted consumers with serious financial problems, this is an issue that impacts vastly more individuals than pay day loans. The debate was followed a day later by the Government opening consultation on the proposal to clarify the provision and coordination of debt advice from the Money Advice Service (MAS) – a service which is under resourced and facing severe cuts.

Kevin Still, Director for Atlantic said: “The pre-Christmas Commons debate on Debt Advice and Debt Management on 1 December 2011 highlighted the ability of politicians to skirt around the real issues facing ‘iceberg Britain’. “Although it was widely acknowledged that we are likely to see increased personal debts in the New Year and that further cuts in household expenditure will impact millions of UK consumers, it is apparent that there is no ‘cunning plan’. Indeed, concerns were raised by several MPs regarding the on-going cuts at MAS, the newly proclaimed champion of ‘debt advice’.

“It seems bizarre that, by the MPs own admission, the Payday lending market is relatively new to the UK market and has somehow created the problems the UK economy is in today. The reality is that it represents a very small proportion, £1.9 billion in 2010 quoted by one MP, of the total consumer lending and has virtually no serious complaints when contrasted to the high...Read more here---> CCR Magazine - Government sidesteps debt issues of ‘iceberg Britain’