New analysis published by the TUC shows that household debt rose sharply over 2016, with unsecured debt (debt other than mortgages) reaching new highs. The TUC says weak wage growth has left more families reliant on borrowing to support their living standards. Continue reading New Year blues: sharp rise in household debt
Credit Unions play key role in tackling debt
A new Financial Health Service offering a one-stop-shop for money advice services has been launched by Business Minister Fergus Ewing. Scotland’s Financial Health Service website provides links to a range of organisations offering information and advice on debt, managing money, housing, homelessness and ethical lending.
A key part of the new website is a Financial Education module which aims to help people to manage their money to stop any future problems.
The website also allows users to search for their local credit unions and find out about the products offered by them, and to search for approved money advisers.
A new law, the Bankruptcy and Debt Advice (Scotland) Act, which comes into force in April 2015, ensures appropriate debt relief and management and includes mandatory provision of money advice.
Launching Scotland’s Financial Health Service in Edinburgh yesterday Mr Ewing said:
“It is important that we take action to help those people in Scotland who are struggling under the burden of debt. We have developed Scotland’s Financial Health Service because we must ensure that people who need to access debt and budgeting advice, do so easily with credible sources.
“Last year, the Accountant in Bankruptcy’s ‘12 Days of Debtmas’ campaign targeted people who may get into financial trouble over the festive period by using high interest, short-term credit.
“During the six months between October 2013 and March 2014 – during which time the ‘12 days of Debtmas’ and ‘Helping Hand with debt’ campaigns ran – 14,307 new members joined credit unions in Scotland. This is a 4.2 per cent increase in total membership.
“People across Scotland can join credit unions – all sorts of people from all walks of life use credit unions to save and borrow responsibly, and the most successful attract a diverse membership.”
Welcoming the launch Paul Walsh, CEO of CUNA Mutual said: “With the ever widening protection gap continuing to spread – leaving 86 per cent of Scottish residents in trouble if their income was lost – it is vital that the right support is provided to those who become financially vulnerable.
Initiatives like this government website, supporting those shouldering the burden of debt, are imperative alongside the practical credit and protection solutions offered by credit unions throughout Scotland. “The credit union movement in Scotland both funds and protects thousands of Scottish residents and has become a solid part of the Scottish financial community.”
ABCUL Scotland Policy Manager Frank McKillop said: “Since Scotland’s first credit union was founded in 1970, generations of volunteers, directors and staff have been focused on helping people in their communities and workplaces to get on top of – and stay in control of – their finances.
“By encouraging a responsible approach to saving, borrowing and budgeting, Scotland’s credit unions are well placed to play their part in building the nation’s financial health.”
Extra £280,000 to help groups who face barriers accessing money advice
Projects which give advice to vulnerable people facing debt and welfare problems will benefit from a £280,000 funding boost. The additional projects will focus on helping the most vulnerable, such as disabled people and victims of domestic abuse.
The extra funding will enable funds to be allocated to a further four projects through the Making Advice Work programme, at the end of January.
Since launching in October, 68 projects have received grants through the Scottish Legal Aid Board’s scheme with £7.45 million spread between projects which help members of the public access the right benefits and avoid debt, and those which offer advice to tackle welfare reform and debt problems.
Among the projects are 12 schemes that provide targeted support to people who face barriers accessing information and addressing money problems.
The new funds will allow more projects provide help to vulnerable groups.
The Deputy First Minister Nicola Sturgeon said: “At a time when people should come together with their friends and family it is vital that the most vulnerable members of our society are protected and cared for.
“Making Advice Work has already helped 68 projects across Scotland and this latest £280,000 investment will strengthen the work of some of these great schemes.
“Westminster has responded to tough economic times by imposing drastic welfare cuts which will affect some of our most vulnerable groups. The impact on disabled people and women is particularly hard, which is why we’ve made this additional funding available.
“This investment is supporting vulnerable people and helping individuals and families make the transition to the new system. I have been clear that this government will not turn its back on vulnerable people.
“As detailed in Scotland’s Future, only with the power of independence can we tackle these welfare reforms head on.”
The grant funding scheme which runs until March 2015 is facilitated through SLAB and jointly funded by the Scottish Government and Money Advice Service.
Lindsay Montgomery, Chief Executive of the Scottish Legal Aid Board, said:
“The Board is delighted that the Scottish Government is making it possible for the Board to support more of the agencies who had applied to us in the summer for funding to help overcome barriers to advice for vulnerable communities
“The additional funding is to enable us to support more of these shortlisted projects and will allow the development of new partnerships and connections between third sector organisations that are already trusted sources of support within these communities, and organisations well placed to provide good quality advice to tackle debt and money problems.”
Money Advice Service’s chief executive Caroline Rookes said: “We are delighted that the Scottish Government has identified additional finances to contribute to the programme of advice funding for marginalised groups that we established as part of Making Advice Work.
“The quality of applications for that programme was extremely high and this additional funding will allow more projects to start and enable more people to resolve their debt problems across Scotland.”
See the attached document (below) for a list of the 68 projects to receive funding through Making Advice Work:
A Scottish Government campaign will highlight help for people struggling with debt, Enterprise Minister Fergus Ewing announced yesterday.
The campaign raises awareness of the Debt Arrangement Scheme (DAS), an initiative that enables people to pay back debts over any reasonable length of time, based on the amount owed and their income and outgoings.
Administered by government agency Accountant in Bankruptcy (AiB), it also freezes interest, fees and charges to prevent debts mounting up. It stops creditors using debt enforcement action, safeguarding people’s homes so long as they keep up mortgage repayments.
The campaign will help people take the first step in solving their money worries by directing them to information on how to find their nearest approved money adviser online at www.helpoutofthehole.org, which goes live today.
Mr Ewing said: “The Scottish Government continues to take action, where it can, to address these problems and introduce measures to help those people in Scotland who are struggling under the burden of debt.
“The Debt Arrangement Scheme is the only government-backed scheme to help people pay back their debts in a dignified way, protecting them from the threat of action by their creditors.
“Recent changes to the Scheme have allowed for earlier freezing of interest, fees and charges helping to prevent debts increasing further. Our aim with this campaign is to raise awareness of DAS which helps people faced with the difficulties of debt to take control of their finances and get help out of the hole.”![images[1]](https://i0.wp.com/nen.press/wp-content/uploads/2013/08/images1.jpg?ssl=1)
The Citizens Advice service has launched a month-long campaign encouraging payday loan customers to fight back against unscrupulous lenders.
Three in four payday borrowers who got advice from the Citizens Advice consumer service had been treated unfairly by their lender and could have grounds for an official complaint to the Financial Ombudsman Service, says the national charity.
Citizens Advice’s in-depth analysis of 665 payday loan cases reported to its consumer service between 1 January and 30 June 2013, finds that at least 76% could have grounds for an official complaint to the Financial Ombudsman, including:
Latest figures from Citizens Advice Scotland’s (CAS) on-going payday loans survey show that lenders are frequently acting in breach of the Good Practice Charter, put in place last November. Scottish CAB advisers dealt with over 1,200 cases related to Payday Loans from April to June this year, and clients are frequently reporting breaches – see case studies below.
Citizens Advice Scotland and Citizens Advice England and Wales launched a month-long campaign across the UK on Monday, urging payday loan customers not to let predatory lenders get away with treating them unfairly.
Consumers who are finding it difficult to raise their payday loan problem with their lender can contact the Financial Ombudsman who will help them through the complaint process. There were 160 complaints made to the Financial Ombudsman between April and June this year about payday loans, with 72% upheld in favour of the consumer.
If a complaint is upheld by the Financial Ombudsman – and the consumer has lost out as a result – the lender can be ordered to put things right. Consumers could get a refund on loan repayments, interest or default charges or compensation for any inconvenience caused.
Citizens Advice Scotland Chief Executive Margaret Lynch said:
“Across Scotland our bureaux are seeing clients whose payday loan debts have spiraled out of control. We’re seeing hardship and misery caused across the country. Our clients feel powerless but they’re not. This campaign is all about showing them that it is possible to fight back. We want to show people who have taken out payday loans how to identify when their lender has treated them unfairly, and how to do something about it. Citizens advice bureaux can help you negotiate a fair repayment plan and complain to the Financial Ombudsman service. It might even be that the Ombudsman feels you’re entitled to a refund for an unauthorised payment or compensation for unfair treatment.’
As part of the campaign Citizens Advice has launched a new online animation to help people get on top of their payday loan problems. It explains that payday lenders aren’t allowed to take money from your bank account without you knowing, nor should they put pressure on to borrow more money or contact you at all hours of the day. Citizens Advice Scotland is also taking to Twitter with the hashtag #paydaywatch as bureaux from across the country tweet about payday loan cases they are helping with.
Advice tips if you’re struggling to repay a payday loan:
Advice tips if you are in financial difficulty and considering a payday loan:
More free mone advice at West Pilton Neighbourhood Centre this Friday (12 April) from 10am – 2pm, courtesy of Money Advice Scotland and CAB. Sessions are free, but by appointment only – to make yours call 551 3194.
LOOKING FOR LOCAL OFFICE/MEETING SPACE?
Are you a small business or community organisation looking to rent affordable office/meeting space?
Pilton Central Association has space available in the West Pilton area and would be open to discuss possible full or shared use of the space on a temporary basis.
Conditions of Let and rent are negotiable.
If you are interested or would like further information plese contact Willie Black on 0751 568 6421.
Looking for free independent money advice? Then West Pilton Neighbourhood Centre is the place to be on Friday 12 April, when you can meet advisors from the Money Advice Service between 10am – 2pm.
This is an appointment-only service, so to book yours call 0131 551 3194 now!
The Money Advice Service gives clear, unbiased advice to help you make informed choices.
The Money Advice Service team will be at
West Pilton Neighbourhood Centre
on Friday 22 February and Friday 1 March
between 10am – 2pm to offer a free money health check and benefits advice.
These sessions are by appointment only, so to arrange your meeting with an adviser call West Pilton Neighbourhood Centre on 551 3194 to book an appointment.
For more information about the Money Advice Service could help you, visit moneyadviceservice.org.uk
… advice at West Pilton Neighbourhood Centre tomorrow!
