IVA & Debt Consolidation Advice

A think tank has claimed that better financial advice could significantly reduce levels of debt in the UK.

According to a report by the Resolution Foundation, 15 million people in the UK on low and moderate incomes are lacking access to advice that would help them reduce their debt and be financially better off.

A National Dividend: The Economic Impact of Financial Advice estimates that there would be other benefits to better financial advice, beyond improvements in individual and national debt levels.

These include a reduction on government Pension Credit spending due to better private pension arrangements and a massive reduction – up to two thirds – of the number of people exposed to financial stress.

"The government stands to make early savings of £100 million per annum in the welfare budget from investing in financial advice, with a profound effect on individual lives," said Clive Cowdery, chairman of the Resolution Foundation.

"Telephone-based advice can be delivered to two million people a year at an annual cost of around £30 million. Developing this national financial advice resource should be at the heart of the government's forthcoming strategy on financial capability."

A recent survey by finance group sesame found that more than a quarter of UK pensioners had no intention of clearing their debt before the end of their life.