In a guest blog post for Thoughts at the Trust, Joseph Surtees, Senior Public Policy Advocate at StepChange Debt Charity, talks about the campaigning work they have been doing on low-income savings.
As readers of the blog will know, at StepChange Debt Charity we help families struggling with problem debt. Last year 600,000 people turned to us for free advice and solutions to their financial worries.
Alongside budgeting advice, we offer support on issues such as insolvency, benefits eligibility, affordable repayment plans and debt relief. Our dedicated vulnerable consumer team is there to offer a little extra help to those who need it.
Today, the number of people in severe problem debt stands at 2.6 million. There are many things government and creditors can do to reduce this number but helping families build savings could be a key response to the crisis. Having £1,000 saved halves the chances a family will fall into debt.