Debt advice system needs to be streamlined

It has been suggested in a recent report that the debt advice system in the UK needs to be streamlined or order to make it more effective for those in need of such services. The suggestion comes as consumers gear themselves up for another financially challenging year, with the soaring cost of living, the VAT hike, government cuts, and potential job losses leaving many households in the financial edge.

If the year turns out to be as challenging as many have predicted it will be there could be further sharp increases in demand for debt related advice, as more and more people realise that they cannot keep up with their financial commitments in the difficult climate. The suggestion has come from the British Banker’s Association, which said that streamlining this sector could provide consumers with greater benefits.

The BBA said that consumers need to be given a better understanding of the system, and debt advice firms should be able to offer assistance to those struggling with debt at an earlier stage. Struggling consumers should also be given a wider range of options according to the BBA, as well as being offered clearer advice on what is available to them and how it can help. Officials from the BBA expressed concern over the confusion in the sector at present, with both formal and informal solutions being offered to consumers, and with some firms charging for advice and others offering it for free.

One of the people involved in the report said: “Our vision is to provide a clear and coherent process to help people facing debt difficulties, to intervene early where possible and to provide a simple debt resolution solution if those early attempts do not succeed. We want to unravel the red tape to bring about a more financially responsible solution for customers.”

Low Rate Loans