StepChange Debt Charity has called on the next government to commit to an ‘Action Plan on Problem Debt’ to tackle the UK’s £168bn consumer debt total. The report recommends six key points to “ensure families come out of the next five years more resilient and better able to weather shocks to their finances”, urging to next government to:
• “Ensure that every family has £1,000 in savings to cover a sudden cost or income shock”
• “Ensure all low income households can access low cost credit products”
• “Scale up free debt advice so it reaches the 1.4 million people who urgently need advice but aren’t getting it”
• “Ensure everyone dealing with their problem debt gets the protection against interest, charges, enforcement and collections they need”
• “Protect children and families from the harm of aggressive debt collection practices”
• “Ensure debt solutions are fit for purpose, and do not have a disproportionate impact on people’s life chances”
Drawing on figures from the Bank of England, Money Advice Service and the Financial Conduct Authority, as well as economic forecasts by the Centre for Economics and Business Research (Cebr), the report highlights that “problem debt is not inevitable and there is a strong social and economic imperative to take action......Read more here