Working with Debt:

Causes and effects of debt in the North East

Alison BaxterRegional Manager, Fincan

Total outstanding UK personal debt:£1.47 Trillion (£158 billion is unsecured debt)

Number of County Court Judgments issued every day in the UK:1317

Daily cost of raising a child in the UK: £29.02

Wonga’s APR5853%

Debt Play Your Cards Right

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

Capable

Included

Enough

What is Financial Well Being?

Causes of debt

•Change in circumstances•Low income•Taking on too much•Irresponsible lending

Facts and figures in the North East

•34p in every £1 of gross income is debt•Average household debt is £6000 •Insolvencies 35% above UK rate•7320 possession orders granted

Effects of debt

•Reduced spending power•Less economic resilience•Personal consequences•Exclusion•Pressure on services