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Press comment: Battle against persistent debt requires financial education

03/02/2020

If you’re covering the Financial Conduct Authority’s letter to CEOs of credit card firms on persistent debt please see the following comment from Rachael Griffin, tax and financial planning expert at Quilter:

Rachael Griffin“Persistent debt is a very real problem plaguing the UK. While there is nothing wrong with debt in itself, when it is used poorly it can destroy a person’s finances in just a matter of months. The Financial Conduct Authority is cracking the whip on credit card firms on how they deal with their customers that have persistent debt.

“Rules introduced in March 2018 were supposed to help the public get the space they needed to pay off their debt appropriately. This was a crucial scheme as study after study has shown that poor financial wellbeing, like being stuck in a vicious circle of debt, leads to a deterioration of wellbeing in other parts of their life.

“The FCA is right to flag that repayments options offered are not reasonable and suspensions of credit cards is not a sustainable solution.

“However, while these actions are noble and necessary it is not going to fix the problem of persistent debt. How can we expect the public to avoid the pitfalls of debt if they are unaware of what they are?

“There is a severe lack of financial knowledge in the UK and the only answer is financial education. People need to, at the very least, know what questions they should be asking when a credit card is offered to them. They can then come up with a financial plan, which can ensure the way they use their money is sustainable for their lives.

“As a matter of urgency ensuring future generations should be equipped to be good with money. An evaluation report of the industry-supported KickStart Money* programme, shows that following financial lessons, two out of three primary aged children were actively working towards a saving goal, more than double the national average. On top of this over 75% of the children that received the lessons delivered by the charity, MyBnk, were able to delay spending.  In short, financial education works.”

 

* KickStart Money is the work of twenty of Britain's leading savings and investment firms, brought together by TISA. The aim is to fill the gap in financial education provision in UK primary schools, by funding the provision of financial education, delivered by the charity MyBnk, to 20,000 primary school children over three years.

For more information contact

Kathleen Gallagher023 8072 629307990 004932kathleen.gallagher@quilter.com

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £110.4 billion in customer investments (as at 31 December 2019).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Quilter International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Quilter Financial Advisers (previously Charles Derby Group)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Wealth Solutions in 2020)
  • Quilter International (previously Old Mutual International)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.

Disclaimer

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By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Quilter plc’s control including amongst other things, international and global economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing and impact of other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in the jurisdictions in which Quilter plc and its affiliates operate. As a result, Quilter plc’s actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in Quilter plc’s forward looking statements.

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