Tackling Problem Debt

Get free, confidential and independent advice on dealing with debt problems in the UK.

National Debtline
www.nationaldebtline.org 
Telephone: 0808 808 4000

National Debtline has received more than 500 calls for help from Wolverhampton North East over the last two years – but with only 17% of people with debt problems in the UK seeking advice, many thousands more in our constituency could be suffering in silence. 

 

Darren commented ‘contacting this free debt advice could mean the difference between financial recovery and financial disaster for thousands of people in Wolverhampton North East.  After contacting National Debtline, 82 percent of people say they feel more in control and knowledgeable in managing their money.’

 

Labour’s Great Recession hit hardworking taxpayers. When they left office, nearly half a million more people were out of work than when they started because they wrecked the economy, and too many hardworking people were faced with problem debt.

 

That is why we put in place our long-term economic plan to build a stronger, healthier economy. 1,000 jobs a day have been created since 2010, and we have cut income tax, frozen fuel duty and backed savers to help hardworking people be more financially secure. We have also taken action to reform consumer credit markets so they work fairly for people who use them.

 

Families are seeing the results of our long-term economic plan, with a record number of people in work and wages rising significantly faster than inflation. But all this progress would be lost if we changed course at this critical general election. We need to continue with our plan to give hardworking taxpayers the financial security to deliver a better future for their families.

 

Creating jobs and keeping taxes down to help people be more financially secure

 

·         Employment is up by 1.9 million since the election – meaning over a 1,000 jobs have been created on average every day.

 

·         Delivered the first above-inflation rise in the minimum wage since Labour’s Great Recession. The minimum wage will also rise again in October, by 3 per cent to £6.70.

 

·         Cutting income tax for over 26 million people. We are increasing the personal allowance to £10,600 this April, a typical tax cut of £825. Over three million people on the lowest incomes will pay no income tax. Over the next parliament we will raise the personal allowance to £12,500, and increase the threshold at which people pay the higher rate to £50,000.

 

·         Saving the typical family around £10 every time they fill up their tank. We have cancelled Labour’s planned fuel duty rises, making petrol 17p per litre cheaper than it would have been by the end of the year.

 

Making consumer credit markets work for hardworking taxpayers

 

·         Ensuring borrowers can afford loans. Under new rules lenders will have to carry out affordability checks for all their lending to make sure they only lend to those who can pay them back. Because of the failure by Wonga to carry out adequate checks they have now agreed to write off the debts of approximately 330,000 customers.

 

·         Introducing a loan price cap. From 2 January 2015, most people using payday lenders have seen their cost of borrowing fall. Interest and fees have been capped at 0.8 per cent per day, and no borrower will ever pay back more than twice what they borrowed. A person taking out a loan for 30 days and repaying on time will pay a maximum of £24 in charges and fees on each £100 borrowed.

 

·         Tough new rules on payday lending. The Financial Conduct Authority (FCA) has announced they will limit lenders to two loan rollovers, compel lenders to signpost borrowers to free debt advice at a rollover, and force them to display clear risk warnings on all advertising.

 

·         Boosting competition by ensuring payday lenders allow price comparison. The Competition and Markets authority have said that payday lenders must make their product details available on at least one price comparisons website to encourage more competition.

 

·         Investing in credit unions. We are investing £38 million in credit unions. This will ensure there is a good value alternative to help people save and access loans if they need them.