Alison Baxter

Regional Development Manager, Fincan

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

Financial Exclusion –

The Practical Impact on Families

Online payday loanBorrow £230 over 30 days Repay £306.15

Pawnbroker Borrow £111 over 5 months Repay £160.39

Home Collected Credit Borrow £300 over 12 monthsRepay £546Total borrowed: £641, Total interest to repay: £371.54

What is the cost?

X Box One FIFA Bundle:Argos - £349.99Brighthouse - £1300

Toshiba 40” 3D TV:Argos - £368Brighthouse - £2106

What is the cost?

•Average household debt £6155

•297 people are made insolvent every day

•Citizens Advice Bureaux dealt with 531,842 debt issues last year

Debt

•Work

•Relationships

•Health

•Use of credit

•Illegal loan sharks

•More exclusion, less money.

Impact

•Costs £100 a year more for fuel to pay bills in cash

•Extra charges for cash handling

•Cost of travel to outlets to make payments

•22% more spent on mobile phone pay as you go contracts

•Barrier to accessing labour market

•Cost of pre-payment cards as an alternative

Banking

•No access to Home Insurance

•No savings

•No access to mortgages

Financial Products and Services

Capability

Financial decision making

Budgeting

Resilience

Promote and support alternatives to high cost credit:

•Credit Unions and CDFIs

•Smarterbuys; The Store;

Solutions

Financial Capability Training:•Barclays Money Skills; Money Mentors; Citizens Advice Financial Skills for Life;

Debt Advice Services:Stepchange; National debtline; CABx; Independent Advice Agencies; Housing Provider services

Solutions

Solutions

www.fincan.co.uk

Contact:Alison Baxteralison@fincan.co.ukTel: 07870749349