Strategy to tackle personal debt

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A strategy to help people in Wales tackle debt and manage their money better is being launched later.

Social justice minister Dr Brian Gibbons said: "We need to do all we can to minimise the effect of the current economic situation for people across Wales."

A team of financial inclusion "champions" has already been appointed.

The plans include financial education in schools, better access to advice and alternative lenders to loan sharks.

A three-month public consultation exercise on the draft strategy, Taking Everyone into Account, will be launched later by Dr Gibbons at Whitchurch High School, Cardiff.

The proposals include improving understanding of financial services and teaching financial skills in schools.

The strategy outlines five key areas:<ul class="bulletList"><li>Access to mainstream financial services. </li><li>Affordable credit and savings. </li><li>Access to free and impartial money and debt advice. </li><li>Helping people to improve their financial skills, including at an early age through financial education in schools. </li><li>Helping people maximise their income, through claiming all benefits and fuel cost help they may be entitled to. </li></ul>

The strategy outlines support for post offices and credit unions to develop "affordable and accessible" financial products.

It will work alongside the three financial inclusion champions for Wales, appointed last October, to improve access to debt advice and increase take-up of suitable bank accounts and alternative lenders to loan sharks.

'Right information'

Dr Gibbons said: "Helping people gain the skills and confidence to manage their money is particularly important.

"We want to see all our citizens having access to affordable financial products and the confidence and capability to use them safely and responsibly.

"We want people to be able to plan for their futures with a reasonable degree of security and to have the right information and the skills to avoid getting into financial difficulties, as well as knowing where to find help should they need to."

The Welsh Assembly Government aims to work with other organisations to tackle excess debt.

Last year, a national strategic "champion" for financial inclusion, Katija Dew, and two assistants working in north and south Wales were appointed to develop partnerships with other agencies.

The Citizen's Advice Bureau (CAB) has reported a sharp rise in recent months in people looking for help.

More than half of those calling the charity's volunteers about mortgage and debt problems were aged between 35 and 49, while one in five were single parents.