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 The term
over-indebtedness is used to describe debt which has become a
major burden for the borrower.
Over-indebtedness
can be caused by, and contributes to, social exclusion,
financial exclusion and poverty.
The Government is
committed to social justice and prosperity for all.
Over-indebtedness presents a barrier to delivery of objectives
across Government, from tackling child poverty and social
exclusion, to reducing barriers to work, and encouraging
appropriate saving and investment.
To meet our
commitments, cross-government action is required to tackle
problem debt.
Problem debt can
only be effectively and appropriately tackled by Government and
the regulators working in partnership with the credit and
utility industries, the voluntary sector, consumer groups and
individuals.
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Tackling Over-indebtedness
- Annual Report 2005 |
 This
Report, published in August 2005, sets out how Government and
partners in the independent regulators, credit industry,
voluntary sector and consumer groups are addressing the issue of
problem debt.
The partners'
approach to tackling over-indebtedness was set out for the first
time in our 2004 Action Plan. The aim
of the current document is to:
present an updated
analysis of the current situation, including detailed new work
on the characteristics of those suffering from
over-indebtedness;
report on progress over
the past year; and
present our strategic
priorities and targets for 2005/06.
  Annual Report
2005 (80 pages).
 Click to
have a printed copy posted to you.
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Face-to-Face Debt Advice Project
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As part of the
Financial Inclusion Fund announced in the 2004 Pre Budget
Report, a sum of £45 million has been allocated to increasing
the provision of free face-to-face debt advice in England and
Wales. The funding will be split over a 2-year period - £15m in
2006-7 and £30m in 2007-8. A bidding round to attract grant
applications was launched on 20 September 2005.
The primary aim of
this project is to deliver an increase in the number of
advisers, and in the number of hours of advice provided, within
geographical areas and/or social groups both characterised by
high financial exclusion.
Full information
here...
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Over-indebtedness
Monitoring Papers |
As part of the strategy
outlined in ‘Tackling Over-indebtedness: Action Plan 2004’ (see
below), the DTI is committed to monitoring levels of
over-indebtedness in the UK. These Monitoring Papers provide a
summary of information on factors that may lead to changes in,
or provide evidence on, the level of over-indebtedness and are
updated quarterly to reflect the most recent information.
Information is drawn primarily from publicly available sources,
although where appropriate we also refer to specific research.
Monitoring Paper
Q1 2005
Monitoring
Paper Q2 2005
Monitoring
Paper Q3 2005
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Over-indebtedness in
Britain (Survey 2004) |
"Over-indebtedness in Britain: a
DTI report on the MORI Financial Services survey 2004" was
published on 1 June 2005. Nearly 10,000 individuals were asked
about their financial situation in relation to both consumer
credit and household bills. Based on this evidence, the report
considers issues such as how we can identify over-indebtedness,
who is over-indebted and whether the situation is getting worse.
Over-indebtedness
in Britain (Survey 2004)
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Tackling
Over-indebtedness - Action Plan 2004 |
 “Tackling Over-indebtedness
– Action Plan 2004”, launched on 20 July 2004, sets out
how Government and partners in the independent
regulators, credit industry, voluntary sector and
consumer groups are addressing the issue of
problem debt.
The partners seek to
“minimise the number of consumers who become
over-indebted; and improve the support and
processes for those who have fallen into debt”.
The document presents the full range of
initiatives currently underway and describes the
mechanisms which have been put in place to co-ordinate
implementation, monitor and evaluate impact, and
assess what new and further work is required. We
will review our approach and progress on an
annual basis.
Tackling Over-indebtedness
– Action Plan 2004.
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Household
Survey on Over-indebtedness (2002) |
The Task Force
on Tackling Over-indebtedness identified the need
for up-to-date statistical information on the
distribution of consumer borrowing across
households, and the extent of financial
difficulties being experienced. Responding to
this, the Department of Trade and Industry
commissioned MORI – who worked in
partnership with Bristol University’s
Personal
Finance Research Centre (PFRC) – to conduct a
national research survey.
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