Debt Statistics A consumer focus January 2017
Contents 3. Message from the Chair 4. About Debt Advice Foundation 5. At-a-glance 6. Overview 7. Age group 8. Gender 9. Region 10. Residential status 11. Employment status 12. Household demographics 13. Helpline outcomes 14. Appendix (data tables) Debt Advice Foundation 2017 Page 2
Message from the Chair Welcome to Debt Advice Foundation's January 2017 helpline statistics update. With the amount of personal borrowing approaching the record levels seen prior to the 2008 global economic recession, it's important that the debt advice sector does everything it can to prepare itself for the inevitable surge in demand for debt advice. One way we can do this is through research. Research not only helps the charity understand and adapt to the ever changing credit landscape and how service-users are impacted by those changes but it also shapes and informs Government and regulatory policy more broadly, both in the debt advice and related sectors. Understanding how and why people call the charity's helpline, how they use the information they are given and how effective that information is, allows us to develop and improve our service for the benefit of future service-users. The more research we have access to, the more likely we are to spot emerging trends that may, for example, influence the way borrowers use credit in the future and how we, both as a charity and as a sector more broadly, might react to those changes. That is why we have developed this monthly statistical resource. Please feel free to get in touch if you have any questions or comments regarding the charity's statistical releases. Dennis Benson OBE Chair Debt Advice Foundation 2017 Page 3
About Debt Advice Foundation Debt Advice Foundation is a registered national debt advice and charity in England and Wales (no. 1148498). At the heart of the charity s philosophy is the prevention and cure of unmanageable consumer debt. Whilst our primary focus is on helping those that are in need of advice and support today, we strongly believe that improving financial literacy amongst the next generation of credit users is key to tackling increasing levels of unmanageable consumer debt in the UK. The charity seeks to carry out these objectives through its free telephone debt counselling service, which helps over 10,000 people every year, and through DebtAware, the charity's award winning debt programme for schoolchildren. The charity holds the Advice Service Alliance s Advice Quality Standard (AQS) and is listed by Money Advice Service as an accredited, free provider of debt advice on its online debt advice locator page (the Money Advice Service is an independent service set up by government to help people manage their money). The charity is a member of AdviceUK, the UK s largest support network for free, independent advice centres and all of the charity's advisers are members of the Institute of Money Advisers (IMA), a charitable body that aims to promote free money advice and develop professional standards. The charity is also a registered supporter of the All-Party Parliamentary Group on Financial Education for Young People and the All-Party Parliamentary Group on Debt and Personal Finance. Debt Advice Foundation is authorised and regulated by the Financial Conduct Authority (no. 692492). Debt Advice Foundation 2017 Page 4
Debt Advice Foundation 2017 Page 5
Jan 16 12 month average Dec 16 Jan 17 Jan 16 12 month average Dec 16 Jan 17 1.1% 1.1% 0. 2. 3.6% 2. 2. 4. 6.4% 6.6% 8.7% 8.2% 7. 7. 10.6% 12.1% 10.2% 13.4% 17. 18. 16.3% 16.3% Repayment term (months) 242 113 126 159 -income ratio 21.3% 20. Jan 16 12 month average Dec 16 Jan 17 5,530 4,580 1,545 842 1,568 1,496 1,663 1,518 1,738 1,619 1,538 1,437 6,219 2,077 749 1,009 Monthly amount ( ) Impoverishment index 908 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17-5000 5000-10000 10000-15000 15000-20000 20000-25000 25000-30000 30000-35000 35000-40000 40000-45000 45000-50000 50000-55000 17,334 16,379 15,048 16,084 14,120 14,486 18,340 18,967 18,789 18,259 17,959 14,129 Number of creditors 30.6% 21. 12.1% 16.6% 6.4% 3.2% 0. 3.2% 1.3% 1.3% 1.3% Debt Advice Foundation - Debt Helpline Statistics (January 2017) 1. Overview This section provides an overview of callers to the charity's helpline in January 2017. The dataset comprises completed advice cases only (this means cases where a full financial assessment has taken place and a debt solution has been recommended). The charity's helpline advisers dealt with a total of 2,218,205 of unsecured debt in January 2017 at an average of 14,129 per case (full financial assessments). c1.1 overview c1.2 profile (January 2017) Average unsecured debt 1 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 6.33 6.30 6.08 6.32 6.22 Average number of unsecured creditors 6.77 6.82 6.90 6.93 6.86 7.0 6.55 6.51 6.8 6.6 6.4 6.2 6.0 5.8 5.6 35. 30. 25. 20. 15. 10. 5. 0. 1 Includes unsecured credit facilities such as credit cards, unsecured loans, short term (payday) loans, overdrafts, store cards and catalogue debts. Secured debts, such as mortgages, and priority arrears (for example rent and council tax debts) are not included. Total unsecured debt band c1.3 by type (January 2017) Jan 16 12 month average Dec 16 Jan 17 7,649 6,804 6,100 5,992 6,710 5,000 10,000 15,000 20,000 1,616 1,005 Credit card Unsecured loan Other debts Overdraft Store card Short term loan Utility debt Benefit overpayment Council tax debt Crown tax debt Trade debt c1.4 Client financial profile (January 2017) Net monthly household income Monthly household expenditure 2 Impoverishment index 3 2,000 1,500 1,000 500 18. 18. 18.3% 15. 1 1 16% 1 2 Monthly household expenditure does not include contractual unsecured debt repayments but does include priority arrears payments. 3 The percentage of cases that have a negative disposable income and are unable to meet the existing essential household expenditure. 1.5 Specified cause of financial impairment (January 2017) 1.6 Debt servicing (January 2017) 25. 20. 15. 10. 5. 0. Loss of job Reduced working hours Pregnancy Illness Divorce Separation Average repayment term (months) 4 to annual income ratio 5 300 86% 86% 8 250 83% 86% 84% 200 82% 150 77% 8 7 100 76% 50 74% 72% 0 7 4 Average number of months to repay the total value of unsecured liabilities in full based on the available disposable income (after monthly essential household expenditure) assuming interest and charges are stopped. 5 Total amount of unsecured debt as a percentage of total annual net income. Debt Advice Foundation 2017 Page 6
18-24 25-34 35-44 45-54 55-64 65+ 18-24 25-34 35-44 45-54 55-64 65+ 126 108 166 198 131 93 7% 7% 6% 1 1 21% 1 1 1 24% Number of months 36% 18-24 25-34 35-44 45-54 55-64 65+ 459 3,734 3,910 928 876 1,483 1,360 1,737 1,639 1,546 1,471 7,322 6,739 Monthly amount ( ) 1,788 1,662 1,510 1,359 Impoverishment index 1,938 5,972 18-24 25-34 35-44 45-54 55-64 65+ 18-24 25-34 35-44 45-54 55-64 65+ 6,540 13,350 16,419 14,960 16,577 13,996 31% 2 1. Population weighting index 1 Debt Advice Foundation - Debt Helpline Statistics (January 2017) 2. Age group This section provides an overview of callers to the helpline in January 2017, broken down by age group. The age group with the highest average unsecured debt in January 2017 was the 55-64 age group ( 16,577).The age group with the highest helpline engagement was the 25-34 age group, which was 83% more likely to call the helpline than the UK average. c2.1 Average unsecured debt (January 2017) c2.2 Case weighting (January 2017) 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 3 2 1 Case weighting (January 2017) Regional contact population weighting index 1 0.93 1.83 1.54 1.14 0.80 0.08 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 1 The population weighting index is calculated by dividing the number of helpline contacts by the latest ONS population estimate for each age -group and comparing it to the UK average. This statistic provides a more useful relative measure of age - group helpline engagement by removing age-group population bias. c2.3 c2.5 by type (January 2017) 65+ 55-64 45-54 35-44 25-34 18-24 5,442 4,962 8,548 2,216 5,186 5,000 10,000 15,000 20,000 Specified cause of financial impairment (January 2017) Credit card Unsecured loan Other debts Overdraft Store card Short term loan Utility debt Benefit overpayment Council tax debt c2.4 c2.6 Client financial profile (January 2017) Net monthly household income Monthly household expenditure 2 Impoverishment index 3 33.3% 2,000 35. 1,500 1,000 500 25. 16.3% 15.4% 15.6% 5.6% 2 Monthly household expenditure does not include contractual unsecured debt repayments but does include priority arrears payments. 3 The percentage of cases that have a negative disposable income and are unable to meet the existing essential household expenditure. Debt servicing (January 2017) 30. 25. 20. 15. 10. 5. 0. 4 3 2 1 Loss of job Reduced working hours Pregnancy Illness Divorce Separation Average repayment term (months) 4 to annual income ratio 5 250 7 81% 9 7 77% 77% 8 200 5 7 6 150 5 100 4 50 0 4 Average number of months to repay the total value of unsecured liabilities in full based on the available disposable income (after monthly essential household expenditure) assuming interest and charges are stopped. 5 Total amount of unsecured debt as a percentage of total annual net income. Debt Advice Foundation 2017 Page 7
Male Female Male Female 141 135 4% 7% 12% 12% 1 Number of months 24% Male Female 6,070 6,301 1,333 1,215 1,671 1,579 5,019 3,360 Monthly amount ( ) Impoverishment index Male Female Male Female 16,575 12,316 41% 5 (main client) Debt Advice Foundation - Debt Helpline Statistics (January 2017) 3. Gender This section provides an overview of callers to the helpline in January 2017, broken down by gender. Males had the highest average amount of debt in January 2017 ( 16,575).The highest weighting of callers to the helpline in the period was females (5). c3.1 Average unsecured debt (January 2017) c3.2 Case weighting (January 2017) 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 7 6 5 4 c3.3 by type (January 2017) Credit card c3.4 Client financial profile (January 2017) Female Male Unsecured loan Other debts Overdraft Store card Short term loan Utility debt Benefit overpayment Council tax debt Crown tax debt 5,000 10,000 15,000 20,000 Average debt Net monthly household income Monthly household expenditure 1 Impoverishment index 2 1,800 16. 16.6% 1,600 16.4% 1,400 16.2% 1,200 16. 1,000 15.6% 15. 800 15.6% 600 400 15.4% 200 15.2% 15. 1 Monthly household expenditure does not include contractual unsecured debt repayments but does include priority arrears payments. 2 The percentage of cases that have a negative disposable income and are unable to meet the existing essential household expenditure. c3.5 Specified cause of financial impairment (January 2017) c3.6 Debt servicing (January 2017) 2 1 Loss of job Reduced working hours Pregnancy Illness Divorce Separation Average repayment term (months) 3 to annual income ratio 4 142 1 104% 141 140 10 139 138 61% 8 137 136 6 135 134 4 133 132 131 3 Average number of months to repay the total value of unsecured liabilities in full based on the available disposable income (after monthly essential household expenditure) assuming interest and charges are stopped. 4 Total amount of unsecured debt as a percentage of total annual net income. Debt Advice Foundation 2017 Page 8
East East of England London North East North West Northern Ireland Scotland South East South West Wales West Yorkshire and East East of England London North East North West Northern Ireland Scotland South East South West Wales West Yorkshire and 86 174 476 151 98 59 137 159 70 2 2 33% 2 43% 4 Number of months 133 285 130 5 5 5 East East of England London North East North West Northern Ireland Scotland South East South West Wales West Yorkshire and the Humber Monthly amount ( ) 2,178 1,931 1,415 1,345 1,601 1,568 1,129 1,067 1,524 1,434 1,908 1,654 1,553 1,293 1,460 1,369 1,244 1,104 1,453 1,367 1,497 1,440 1,768 1,664 Impoverishment index East East of England London North East North West Northern Ireland Scotland South East South West Wales West Yorkshire and the Humber East East of England London North East North West Northern Ireland Scotland South East South West Wales West Yorkshire and the Humber 21,282 12,062 16,021 9,434 8,850 14,983 35,803 14,419 9,782 11,432 16,397 13,521 1 4% 1% 3% 4% Population weighting index 1 Debt Advice Foundation - Debt Helpline Statistics (January 2017) 4. Region This section provides an overview of callers to the helpline in January 2017, broken down by region. The region with the highest average unsecured debt in January 2017 was Scotland ( 35,803).The region with the highest helpline engagement was East of England which was 36% more likely to call the helpline than the UK average. c4.1 Average unsecured debt (January 2017) c4.2 Case weighting (January 2017) 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 16% 12% 6% 4% 2% Case weighting (January 2017) Regional contact population weighting index 1 1.36 1.15 1.21 1.10 0.95 0.45 0.39 1.14 1.01 0.94 0.92 0.83 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 1 The population weighting index is calculated by dividing the number of helpline contacts by the latest ONS population estimate for each region and comparing it to the UK average. This statistic provides a more useful relative measure of regional helpline engagement by removing regional population bias. c4.3 by type (January 2017) Credit card c4.4 Client financial profile (January 2017) Yorkshire and West Wales South West South East Scotland Unsecured loan Other debts Overdraft Store card Short term loan Northern Ireland Utility debt North West North East Benefit overpayment London Council tax debt East of England Crown tax debt East Trade debt 10,000 20,000 30,000 40,000 c4.5 Specified cause of financial impairment (January 2017) c4.6 Net monthly household income Monthly household expenditure 2 Iimpoverishment index 3 28.6% 2,500 25. 2,000 20. 21.4% 2 1,500 15.4% 16.7% 16.7% 16.7% 1,000 8.7% 9. 1 500 0. 0. 2 Monthly household expenditure does not include contractual unsecured debt repayments but does include priority arrears payments. 3 The percentage of cases that have a negative disposable income and are unable to meet the existing essential household expenditure. Debt servicing (January 2017) 6 5 4 Loss of job Reduced working hours Pregnancy Illness Divorce Separation Average repayment term (months) 4 to annual income ratio 5 500 25 450 192% 400 20 350 300 15 250 91% 81% 83% 82% 200 71% 7 6 66% 66% 64% 10 150 4 100 5 50 0 4 Average number of months to repay the total value of unsecured liabilities in full based on the available disposable income (after monthly essential household expenditure) assuming interest and charges are stopped. 5 Total amount of unsecured debt as a percentage of total annual net income. Debt Advice Foundation 2017 Page 9
58 153 107 161 3% 1 1 Number of months 26% 2 2,421 2,323 858 723 1,854 1,717 1,046 940 10,338 6,253 2,607 8,082 Monthly amount ( ) 1,609 1,529 Impoverishment index 4,451 4,148 7,801 21,036 11,292 12,839 2 2% 5 Debt Advice Foundation - Debt Helpline Statistics (January 2017) 5. Residential status This section provides an overview of callers to the helpline in January 2017, broken down by residential status. Homeowner was the group with the highest average unsecured debt ( 21,036) in January 2017. Tenant was the most likely group to call the charity for advice (5). c5.1 Average unsecured debt (January 2017) c5.2 Case weighting (January 2017) 25,000 7 20,000 15,000 6 5 4 10,000 5,000 Homeowner Unknown Tenant Homeowner Unknown Tenant c5.3 c5.5 by type (January 2017) Tenant Unknown Homeowner Credit card Unsecured loan Other debts Overdraft Store card Short term loan Utility debt Benefit overpayment Council tax debt Crown tax debt Trade debt 10,000 20,000 30,000 Specified cause of financial impairment (January 2017) c5.4 c5.6 Client financial profile (January 2017) Net monthly household income Monthly household expenditure 1 Impoverishment index 2 19. 2,000 20. 16. 15.4% 1,500 1,000 500 0. Homeowner Unknown Tenant 1 Monthly household expenditure does not include contractual unsecured debt repayments but does include priority arrears payments. 2 The percentage of cases that have a negative disposable income and are unable to meet the existing essential household expenditure. Debt servicing (January 2017) 15. 10. 5. 0. 2 1 Homeowner Unknown Tenant Loss of job Reduced working hours Pregnancy Illness Divorce Separation 180 160 140 120 100 80 60 40 20 0 Average repayment term (months) 3 to annual income ratio 4 5 7 7 81% Homeowner Unknown Tenant 9 8 7 6 5 4 3 Average number of months to repay the total value of unsecured liabilities in full based on the available disposable income (after monthly essential household expenditure) assuming interest and charges are stopped. 4 Total amount of unsecured debt as a percentage of total annual net income. Debt Advice Foundation 2017 Page 10
Self-employed d (Other) d (JSA) Retired Self-employed d (Other) d (JSA) Retired 70 195 417 0 545 6% 6% 1 1 1 2 2 2 Neg DI, can't repay 170 3 Number of months 67% Selfemployed Selfemployed d (Other) d (JSA) Retired 1,699 1,512 1,761 1,687 2,043 1,962 1,229 1,215 578 584 Monthly amount ( ) 1,644 1,510 Impoverishment index d (Other) d (JSA) Retired Selfemployed d (Other) d (JSA) Retired 13,075 14,513 33,933 7,294 9,372 22,864 4 1 1 4% Debt Advice Foundation - Debt Helpline Statistics (January 2017) 6. Employment status This section provides an overview of callers to the helpline in January 2017, broken down by status. Self-employed was the group with the highest average unsecured debt ( 33,933) in January 2017. was the most likely group to call us for advice (4). c6.1 Average unsecured debt (January 2017) c6.2 Case weighting (January 2017) 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 4 4 3 2 1 c6.3 by type (January 2017) Retired d (JSA) d (Other) Other debts Overdraft Store card Short term loan Utility debt Self-employed Benefit overpayment Council tax debt Crown tax debt Trade debt 10,000 20,000 30,000 40,000 Credit card Unsecured loan c6.4 Client financial profile (January 2017) Net monthly household income Monthly household expenditure 1 Impoverishment index 2 2,500 30. 35. 2,000 25. 30. 25. 1,500 17.2% 15.4% 16.7% 20. 1,000 15. 6. 10. 500 0. 5. 0. c6.5 Specified cause of financial impairment (January 2017) c6.6 1 Monthly household expenditure does not include contractual unsecured debt repayments but does include priority arrears payments. 2 The percentage of cases that have a negative disposable income and are unable to meet the existing essential household expenditure. Debt servicing (January 2017) 7 6 5 4 Loss of job Reduced working hours Pregnancy Illness Divorce Separation Average repayment term (months) 3 to annual income ratio 4 600 7 81% 7 77% 77% 9 8 500 5 7 400 6 300 5 4 200 100 0 3 Average number of months to repay the total value of unsecured liabilities in full based on the available disposable income (after monthly essential household expenditure) assuming interest and charges are stopped. 4 Total amount of unsecured debt as a percentage of total annual net income. Debt Advice Foundation 2017 Page 11
1 adult/0 1 adult/1 1 adult/2 1 adult/3+ 2 adults/0 2 adults/1 2 adults/2 2 adults/3+ 1 adult/0 1 adult/1 1 adult/2 1 adult/3+ 2 adults/0 2 adults/1 2 adults/2 2 adults/3+ 159 117 156 154 159 87 112 156 12% 1 Number of months 3 33% 33% 4 4 1 adult/0 1 adult/1 1 adult/2 1 adult/3+ 2 adults/0 2 adults/1 2 adults/2 2 adults/3+ 971 903 Monthly amount ( ) 1,560 1,477 1,530 1,469 1,855 1,769 1,711 1,590 1,735 1,623 3,068 2,834 2,497 2,232 Impoverishment index 1 adult & 0 1 adult & 1 1 adult & 2 1 adult & 3+ 2 adults & 0 2 adults & 1 2 adults & 2 2 adults & 3+ 1 adult & 0 1 adult & 1 1 adult & 2 1 adult & 3+ 2 adults & 0 2 adults & 1 2 adults & 2 2 adults & 3+ 10,705 9,719 9,452 13,270 19,357 9,690 26,345 41,270 33% 1 Debt Advice Foundation - Debt Helpline Statistics (January 2017) 7. Household demographics This section provides an overview of callers to the helpline in January 2017, broken down by household demographics. 2 adults & 3+ was the group with the highest average unsecured debt ( 41,270) in January 2017. 1 adult & 0 was the most likely group to call us for advice (33%). c7.1 Average unsecured debt (January 2017) c7.2 Case weighting (January 2017) 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 3 2 1 c7.3 by type (January 2017) 2 adults/3+ 2 adults/2 2 adults/1 2 adults/0 1 adult/3+ 1 adult/2 1 adult/1 1 adult/0 10,000 20,000 30,000 40,000 Credit card Unsecured loan Other debts Overdraft Store card Short term loan Utility debt Benefit overpayment Council tax debt c7.4 Client financial profile (January 2017) Net monthly household income Monthly household expenditure 1 28.6% Impoverishment index 2 3,500 25. 30. 3,000 25. 2,500 17.3% 16.7% 16.7% 20. 2,000 1,500 9.7% 12. 15. 1,000 10. 500 5. 0. 0. c7.5 Specified cause of financial impairment (January 2017) c7.6 1 Monthly household expenditure does not include contractual unsecured debt repayments but does include priority arrears payments. 2 The percentage of cases that have a negative disposable income and are unable to meet the existing essential household expenditure. Debt servicing (January 2017) 4 4 3 2 1 Loss of job Reduced working hours Pregnancy Illness Divorce Separation 180 160 140 120 100 80 60 40 20 0 Average repayment term (months) 3 to annual income ratio 4 5 7 7 81% 77% 77% 9 8 7 6 5 4 3 Average number of months to repay the total value of unsecured liabilities in full based on the available disposable income (after monthly essential household expenditure) assuming interest and charges are stopped. 4 Total amount of unsecured debt as a percentage of total annual net income. Debt Advice Foundation 2017 Page 12
Outcome DRO (7) IVA/Trust Deed (6) Bankruptcy (6) Budgeting advice (4) Informal Arrangement (4) Other (3) 3rd party call (17) Bailiff assistance (6) Legal (6) Credit rating (6) Current insolvency case (5) Benefits (5) Disputed liability (4) Other (22) Enquiry Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 33% 32% 32% 32% 2 34% 26% 23% 2 33% 2 2 22% 26% 21% 21% 16% 12% 16% 16% 22% 22% 21% 23% 27% 32% 2 27% 21% 21% 31% 67% 6 6 6 71% 66% 7 74% 77% 72% 67% 7 1 16% 2 1 21% 1 1 1 1 12% 7% Debt Advice Foundation - Debt Helpline Statistics (January 2017) 8. Helpline outcomes This section provides an overview of helpline activity in January 2017, including the types of enquiries dealt with as well as the recommendations made by the charity's advisers. 33% of callers to the charity's helpline required a full financial assessment by a helpline adviser whilst 67% required assistance with a specific debt-related issue. 8.1 Case outcome analysis 8.2 Financial assessment outcomes 4 Financial assessment outcomes 2 Non-financial assessment outcomes 3 10 9 8 7 6 5 4 10 9 8 7 6 5 4 Budgeting advice Other Individual Voluntary Arrangement/Trust Deed Debt Relief Order Informal Arrangement 5 Debt Arrangement Scheme Bankruptcy 8.3 2 Cases that required a full financial assessment and managed solution intervention (see 8.2) 3 Cases that did not require a full financial assessment, for example, a specific question relating to a point of law (see 8.3). Non-financial assessment outcomes 8.4 4 Advice recommendations made to the client following f inancial assessment and explanation of the available options (this may differ to the advice chosen by the client). 5 Informal arrangements can be managed interventions with a fairshare provider or a self managed programme via Money Advice Trust's Cashflow. Outcome map (per 100 cases in January 2017) Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 22% 21% 1 22% 21% 1 21% 24% 7% 6% 12% 7% 7% 7% 6% 7% 7% 24% 23% 1 21% 22% 22% 23% 2 22% 3rd party call Bailiff assistance Benefits Council Tax Credit rating Current insolvency case Disputed liability Housing assistance Legal Mortgage 7% Other 5 10 Financial assessment outcomes (30) Non-financial assessment outcomes (70) 8.5 Advice take-up (January 2017) 10 9 8 7 6 5 4 1 31% Advice recommended by adviser 27% 47% 2% Advice chosen by client Budgeting advice Other Individual Voluntary Arrangement/Trust Deed Debt Relief Order Informal Arrangement Debt Arrangement Scheme Bankruptcy 6 Following a full financial assessment, each client is provided with a recommended course of action along with a comprehensive breakdown of each solution they legally have access to in order that they are able to make an informed choice. 8.6 Weekly call density map (January 2017) 7 0.-1. 1.-2. 2.-3. 3.-4. Saturday Friday Thursday Wednesday Tuesday Monday 7 The density map charts when calls to the charity's helpline were received during the month. The more calls the charity received on a given weekday and hour during the month, the higher the corresponding density value. Debt Advice Foundation 2017 Page 13
Appendix (data tables) T1.1 - overview Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Average unsecured debt 17,334 16,379 15,048 16,084 14,120 14,486 18,340 18,967 18,789 18,259 17,959 14,129 Average number of unsecured creditors 6.33 6.30 6.08 6.32 6.22 6.55 6.77 6.82 6.90 6.86 6.51 6.93 T1.2 - profile (January 2017) - 5000 5000-10000 10000-15000 15000-20000 20000-25000 25000-30000 30000-35000 35000-40000 40000-45000 45000-50000 50000-55000 Category weighting 30.6% 21. 12.1% 16.6% 6.4% 3.2% 0. 3.2% 1.3% 1.3% 1.3% T1.3 - by type (January 2017)* Jan 16 12 month average Dec 16 Jan 17 Credit card 6,100 6,804 7,649 5,530 Unsecured loan 6,710 5,992 6,219 4,580 Other debts 1,005 1,616 2,077 1,545 Overdraft 908 1,009 749 842 Store card 616 560 534 567 Short term loan 309 360 377 467 Utility debt 419 237 151 225 Benefit overpayment 165 254 341 254 Council tax debt 216 227 313 306 Crown tax debt 120 223 117 140 Trade debt 4 37 20 * Some listed debts may not be included in the final unsecured totals dues to the laws governing treatment of certain liabilaities in different debt solutions. T1.4 - Client financial profile (January 2017) Jan 16 12 month average Dec 16 Jan 17 Net monthly household income 1,568 1,663 1,738 1,538 Monthly household expenditure 1,496 1,518 1,619 1,437 Impoverishment index T1.5 - Specified cause of financial impairment (January 2017) Jan 16 12 month average Dec 16 Jan 17 Loss of job 21% 1 16% 21% Reduced working hours 6% 7% Pregnancy 1% 2% 2% Illness 16% 7% Divorce 1% 4% 2% 4% Separation 12% 7% Other 43% 4 4 46% T1.6 - Debt servicing (January 2017) Jan 16 12 month average Dec 16 Jan 17 Average repayment term (months) 242 113 126 159 to annual income ratio 86% 83% 86% 77% Debt Advice Foundation 2017 Page 14
Appendix (data tables) T2.1 - Average unsecured debt (age group) Average unsecured debt (January 2017) 18-24 25-34 35-44 45-54 55-64 65+ 6,540 13,350 16,419 14,960 16,577 13,996 T2.2 - Case weighting (age group) 18-24 25-34 35-44 45-54 55-64 65+ Case weighting (January 2017) 10.2% 31.2% 24. 20.4% 11. 1. Regional contact population weighting index 92. 182. 153.7% 114. 80.3% 8.1% T2.3 - Average debt by type (age group)* 18-24 25-34 35-44 45-54 55-64 65+ Credit card 459 5,442 4,962 8,548 6,739 1,938 Unsecured loan 3,734 3,910 7,322 2,216 5,186 5,972 Other debts 1,221 1,105 1,593 1,275 3,051 3,667 Overdraft 457 865 617 1,397 567 1,167 Store card 488 545 528 530 822 757 Short term loan 180 928 402 278 129 Utility debt 88 206 351 293 43 Benefit overpayment 434 7 554 36 Council tax debt 49 251 693 155 105 368 Crown tax debt 132 314 38 120 Trade debt 64 * Some listed debts may not be included in the final unsecured totals dues to the laws governing treatment of certain liabilaities in different debt solutions. T2.4 - Client financial profile (age group) 18-24 25-34 35-44 45-54 55-64 65+ Net monthly household income 928 1,483 1,737 1,546 1,788 1,510 Monthly household expenditure 876 1,360 1,639 1,471 1,662 1,359 Impoverishment index 25. 16.3% 15.4% 15.6% 5.6% 33.3% T2.5 - Cause of financial impairment (age group) 18-24 25-34 35-44 45-54 55-64 65+ Loss of job 0. 23. 35.7% 18. 9.1% 0. Reduced working hours 0. 19. 21.4% 6.3% 9.1% 0. Pregnancy 0. 0. 0. 0. 0. 0. Illness 0. 0. 0. 18. 18.2% 0. Divorce 0. 0. 7.1% 12. 0. 0. Impoverishment index 25. 16.3% 15.4% 15.6% 5.6% 33.3% Impoverishment index 25. 16.3% 15.4% 15.6% 5.6% 33.3% T2.6 - Debt servicing (age group) 18-24 25-34 35-44 45-54 55-64 65+ Average repayment term (months) 126 108 166 198 131 93 to annual income ratio 5 7 7 81% 77% 77% Debt Advice Foundation 2017 Page 15
Appendix (data tables) T3.1 - Average unsecured debt (gender) Average unsecured debt (January 2017) Male Female 16,575 12,316 T3.2 - Case weighting (gender) Male Female Case weighting (January 2017) 41.3% 58.7% T3.3 - Average debt by type (gender)* Male Female Credit card 6,070 5,019 Unsecured loan 6,301 3,360 Other debts 1,869 1,310 Overdraft 970 728 Store card 189 822 Short term loan 827 216 Utility debt 212 233 Benefit overpayment 23 419 Council tax debt 321 248 Crown tax debt 78 187 Trade debt 34 * Some listed debts may not be included in the final unsecured totals dues to the laws governing treatment of certain liabilaities in different debt solutions. T3.4 - Client financial profile (gender) Male Female Net monthly household income 1,333 1,671 Monthly household expenditure 1,215 1,579 Impoverishment index 25. 16.3% T3.5 - Cause of financial impairment (gender) Male Female Loss of job 24. 19. Reduced working hours 12. 14.3% Pregnancy 0. 0. Illness 12. 4. Divorce 4. 4. Impoverishment index 25. 16.3% Impoverishment index 25. 16.3% T3.6 - Debt servicing (gender) Male Female Average repayment term (months) 141 135 to annual income ratio 104% 61% Debt Advice Foundation 2017 Page 16
Appendix (data tables) T4.1 - Average unsecured debt (region) Average unsecured debt (January 2017) East East of England London North East North West 21,282 12,062 16,021 9,434 Northern Ireland 8,850 14,983 Scotland South East South West Wales West Yorkshire and the Humber 35,803 14,419 9,782 11,432 16,397 13,521 T4.2 - Case weighting (region) East East of England London North East North West Case weighting (January 2017) 8.3% 12.7% 14.6% 3. Northern Ireland 13.4% 1.3% Scotland South East South West Wales West Yorkshire and the Humber 3.2% 11. 9.6% 4. 8. 7.6% Regional contact population weighting index 115.3% 136. 110. 94. 121.4% 44. 38.6% 83.4% 113.7% 93.7% 101. 92.3% T4.3 - Average debt by type (region)* East East of England London North East North West Northern Ireland Credit card 7,383 6,755 4,661 2,839 2,133 6,339 Scotland South East South West Wales West 10,749 9,240 4,949 4,876 5,112 Yorkshire and the Humber 4,615 Unsecured loan 9,334 2,475 6,509 912 3,120 2,672 16,926 2,552 2,824 1,724 6,047 4,379 Other debts 327 591 2,902 1,233 1,125 4,029 6,205 1,016 487 2,339 2,693 691 Overdraft 2,609 665 649 1,675 645 500 1,400 497 646 43 815 675 Store card 1,016 339 225 828 603 971 515 598 1,924 426 504 Short term loan 596 467 468 2,459 294 322 474 170 194 364 448 Utility debt 140 183 178 83 399 300 234 129 66 514 Benefit overpayment 538 532 131 48 125 82 757 116 158 Council tax debt 42 90 181 153 603 474 200 169 214 205 636 784 Crown tax debt 259 11 105 326 958 Trade debt 136 * Some listed debts may not be included in the final unsecured totals dues to the laws governing treatment of certain liabilaities in different debt solutions. T4.4 - Client financial profile (region) East East of England London North East North West Northern Ireland Net monthly household income 2,178 1,415 1,601 1,129 1,524 1,908 Scotland South East South West Wales West 1,553 1,460 1,244 1,453 1,497 Yorkshire and the Humber 1,768 Monthly household expenditure 1,931 1,345 1,568 1,067 1,434 1,654 1,293 1,369 1,104 1,367 1,440 1,664 Impoverishment index 25. 16.3% 15.4% 15.6% 5.6% 33.3% 0. 0. 0. 0. 0. 0. T4.5 - Cause of financial impairment (region) East East of England London North East North West Northern Ireland Loss of job 0. 10. 42. 33.3% 12. 0. Scotland South East South West Wales West 0. 10. 50. 25. 28.6% Yorkshire and the Humber 40. Reduced working hours 16.7% 10. 14.3% 0. 12. 0. 0. 30. 0. 50. 0. 0. Pregnancy 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. Illness 16.7% 10. 0. 0. 0. 0. 0. 30. 0. 0. 0. 0. Divorce 0. 0. 0. 0. 0. 50. 0. 10. 25. 0. 0. 0. Impoverishment index 25. 16.3% 15.4% 15.6% 5.6% 33.3% 0. 0. 0. 0. 0. 0. Impoverishment index 25. 16.3% 15.4% 15.6% 5.6% 33.3% 0. 0. 0. 0. 0. 0. T4.6 - Debt servicing (region) East East of England London North East North West Northern Ireland Average repayment term (months) 86 174 476 151 98 59 Scotland South East South West Wales West 137 159 70 133 285 Yorkshire and the Humber 130 to annual income ratio 81% 71% 83% 7 4 6 192% 82% 66% 66% 91% 64% Debt Advice Foundation 2017 Page 17
Appendix (data tables) T5.1 - Average unsecured debt (housing status) Average unsecured debt (January 2017) Homeowner 7,801 21,036 Unknown Tenant 11,292 12,839 T5.2 - Case weighting (housing status) Homeowner Unknown Tenant Case weighting (January 2017) 13.6% 24. 1. 59.1% T5.3 - Average debt by type (housing status)* Homeowner Unknown Tenant Credit card 2,421 10,338 2,607 4,451 Unsecured loan 2,323 6,253 8,082 4,148 Other debts 1,087 1,634 1,709 Overdraft 345 1,399 463 726 Store card 340 584 643 Short term loan 1,468 54 140 420 Utility debt 26 146 320 Benefit overpayment 47 7 425 Council tax debt 144 380 332 Crown tax debt 192 295 72 Trade debt 34 * Some listed debts may not be included in the final unsecured totals dues to the laws governing treatment of certain liabilaities in different debt solutions. T5.4 - Client financial profile (housing status) Homeowner Unknown Tenant Net monthly household income 858 1,854 1,046 1,609 Monthly household expenditure 723 1,717 940 1,529 Impoverishment index 25. 16.3% 15.4% 15.6% T5.5 - Cause of financial impairment (housing status) Homeowner Unknown Tenant Loss of job 28.6% 26.3% 0. 17. Reduced working hours 14.3% 5.3% 0. 17. Pregnancy 0. 0. 0. 0. Illness 0. 5.3% 0. 10. Divorce 0. 10. 0. 2. Impoverishment index 25. 16.3% 15.4% 15.6% Impoverishment index 25. 16.3% 15.4% 15.6% T5.6 - Debt servicing (housing status) Homeowner Unknown Tenant Average repayment term (months) 58 153 107 161 to annual income ratio 5 7 7 81% Debt Advice Foundation 2017 Page 18
Appendix (data tables) T6.1 - Average unsecured debt ( status) Average unsecured debt (January 2017) employmen t Selfemployed Selfemployed 13,075 14,513 33,933 d (Other) d (JSA) 7,294 9,372 T6.2 - Case weighting ( status) employmen t Selfemployed Case weighting (January 2017) 39.7% 18.6% 8.3% 0. d (Other) d (JSA) 19.2% 10.3% T6.3 - Average debt by type ( status)* employmen t Selfemployed Credit card 5,114 5,469 16,088 d (Other) d (JSA) 2,974 2,645 Unsecured loan 3,937 5,414 12,314 1,518 2,568 Other debts 1,515 282 2,514 1,390 1,401 Overdraft 984 1,067 1,054 409 562 Store card 471 601 1,264 541 402 Short term loan 840 21 316 117 790 Utility debt 158 276 140 416 203 Benefit overpayment 271 95 657 40 Council tax debt 211 519 77 186 762 Crown tax debt 58 535 166 25 Trade debt 108 * Some listed debts may not be included in the final unsecured totals dues to the laws governing treatment of certain liabilaities in different debt solutions. T6.4 - Client financial profile ( status) employmen t Selfemployed Net monthly household income 1,699 1,761 2,043 d (Other) d (JSA) 1,229 578 Monthly household expenditure 1,512 1,687 1,962 1,215 584 Impoverishment index 25. 16.3% 15.4% 15.6% 5.6% 33.3% T6.5 - Cause of financial impairment ( status) employmen t Selfemployed Loss of job 9.4% 18.2% 37. 0. d (Other) d (JSA) 28.6% 66.7% Reduced working hours 18. 18.2% 12. 0. 0. 0. Pregnancy 0. 0. 0. 0. 0. 0. Illness 0. 9.1% 25. 0. 28.6% 0. Divorce 6.3% 0. 12. 0. 0. 0. Impoverishment index 25. 16.3% 15.4% 15.6% 5.6% 33.3% Impoverishment index 25. 16.3% 15.4% 15.6% 5.6% 33.3% T6.6 - Debt servicing ( status) employmen t Average repayment term (months) 70 195 417 0 d (Other) 545 d (JSA) Neg DI, can't repay to annual income ratio 5 7 7 81% 77% 77% Debt Advice Foundation 2017 Page 19
Appendix (data tables) T7.1 - Average unsecured debt (household demographics) Average unsecured debt (January 2017) 1 adult & 0 1 adult & 1 1 adult & 2 1 adult & 3+ 10,705 9,719 9,452 13,270 2 adults & 0 2 adults & 1 19,357 9,690 2 adults & 2 2 adults & 3+ 26,345 41,270 T7.2 - Case weighting (household demographics) 1 adult & 0 1 adult & 1 1 adult & 2 1 adult & 3+ 2 adults & 0 2 adults & 1 2 adults & 2 2 adults & 3+ Case weighting (January 2017) 33.1% 19.7% 8. 5.1% 15.3% 7.6% 5.1% 5.1% T7.3 - Average debt by type (household demographics)* 1 adult/0 1 adult/1 1 adult/2 1 adult/3+ 2 adults/0 2 adults/1 2 adults/2 2 adults/3+ Credit card 4,471 3,736 3,070 3,978 8,396 4,947 6,648 16,372 Unsecured loan 3,207 2,472 3,496 2,473 6,138 978 14,035 14,453 Other debts 945 1,338 1,033 2,490 2,616 1,217 836 3,741 Overdraft 800 464 645 499 399 624 902 2,156 Store card 256 460 924 398 978 1,443 333 154 Short term loan 464 818 24 319 484 442 201 Utility debt 145 244 651 237 158 113 175 Benefit overpayment 338 52 285 206 21 1,026 47 Council tax debt 173 195 293 1,144 127 110 1,488 Crown tax debt 77 24 302 90 1,438 Trade debt 101 * Some listed debts may not be included in the final unsecured totals dues to the laws governing treatment of certain liabilaities in different debt solutions. T7.4 - Client financial profile (household demographics) 1 adult/0 1 adult/1 1 adult/2 1 adult/3+ 2 adults/0 2 adults/1 2 adults/2 2 adults/3+ Net monthly household income 971 1,560 1,530 1,855 1,711 1,735 3,068 2,497 Monthly household expenditure 903 1,477 1,469 1,769 1,590 1,623 2,834 2,232 Impoverishment index 25. 16.3% 15.4% 15.6% 5.6% 33.3% 0. 0. T7.5 - Cause of financial impairment (household demographics) 1 adult/0 1 adult/1 1 adult/2 1 adult/3+ 2 adults/0 2 adults/1 2 adults/2 2 adults/3+ Loss of job 35.3% 20. 16.7% 0. 12. 40. 0. 20. Reduced working hours 11. 20. 0. 40. 12. 20. 0. 0. Pregnancy 0. 0. 0. 0. 0. 0. 0. 0. Illness 0. 0. 16.7% 0. 18. 20. 0. 0. Divorce 0. 10. 16.7% 20. 0. 0. 0. 0. Impoverishment index 25. 16.3% 15.4% 15.6% 5.6% 33.3% 0. 0. Impoverishment index 25. 16.3% 15.4% 15.6% 5.6% 33.3% 0. 0. T7.6 - Debt servicing (household demographics) 1 adult/0 1 adult/1 1 adult/2 1 adult/3+ 2 adults/0 2 adults/1 2 adults/2 2 adults/3+ Average repayment term (months) 159 117 156 154 159 87 112 156 to annual income ratio 5 7 7 81% 77% 77% Debt Advice Foundation 2017 Page 20
Appendix (data tables) T8.1 -Case outcome analysis Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Financial assessment outcomes 33% 32% 32% 32% 2 34% 26% 23% 2 33% Non-financial assessment outcomes 67% 6 6 6 71% 66% 7 74% 77% 72% 67% 7 T8.2 -Financial assessment outcomes Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Bankruptcy 2 2 22% 26% 21% 21% Debt Arrangement Scheme 1% 1% 3% 1% 1% 2% 1% Informal Arrangement 16% 12% 16% 16% Debt Relief Order 22% 27% 27% 22% 21% 21% 23% 32% 2 21% 31% Individual Voluntary Arrangement/Trust Deed 1 16% 2 1 21% 1 1 Other 7% 7% 12% 6% Budgeting advice 1 1 12% 7% T8.3 -Non-financial assessment outcomes Jan 17 Dec 16 Nov 16 Oct 16 Sep 16 Aug 16 Jul 16 Jun 16 May 16 Apr 16 Mar 16 Feb 16 3rd party call 24% 21% 1 21% 22% 1 21% 22% Bailiff assistance 6% 7% Benefits 7% 12% Council Tax 3% 4% 2% 3% 3% 3% 2% 1% 3% 1% 2% Credit rating 4% 4% 3% 7% 4% Current insolvency case 7% 7% 7% Disputed liability 6% 6% 6% Housing assistance 3% 3% 2% 2% 4% 4% 4% 4% 4% 4% Legal 7% 7% 6% Mortgage 3% 2% 4% 3% 4% 4% 4% 3% 4% 3% Other 22% 2 23% 22% 22% 21% 1 23% 24% T8.5 -Advice take-up (January 2017) Advice recommended by adviser Advice chosen by client Bankruptcy 2% Debt Arrangement Scheme Informal Arrangement 47% Debt Relief Order 31% 27% Individual Voluntary Arrangement/Trust Deed 1 Other 6% Budgeting advice Debt Advice Foundation 2017 Page 21
Appendix (data tables) T8.6 -Weekly call density map (January 2017) Monday Tuesday Wednesday Thursday Friday Saturday 08:00 0.7% 0.6% 1.3% 0.7% 0.7% 0. 09:00 2.4% 2.1% 1.3% 1.4% 1.6% 0.7% 10:00 1.4% 2.4% 1. 2.1% 2.3% 1.4% 11:00 1.4% 3.1% 2. 2.3% 2.1% 0. 12:00 2. 2. 1. 2.3% 1. 1.1% 13:00 1.7% 3. 2. 2.1% 1. 0.7% 14:00 1.7% 2.4% 1.4% 2.6% 2. 1.2% 15:00 1.7% 1.3% 2.7% 2.3% 2.1% 0.2% 16:00 1.7% 1.7% 0.7% 1.2% 0.4% 0. 17:00 1.1% 1.3% 1.4% 1.6% 0.7% 0. 18:00 0. 0.6% 0.6% 1.1% 0. 0. 19:00 0.6% 0. 0.6% 0. 0. 0. Debt Advice Foundation 2017 Page 22
Debt Advice Foundation 1 Anchor Court Commercial Road Darwen BB3 0DB Telephone: 0800 779 71 36 Email: press.office@debtadvicefoundation.org Website: www.debtadvicefoundation.org Facebook: /DebtAdviceFoundation Twitter: @DebtAdviceDAF If you are experiencing financial difficulties, please call the charity's helpline on 0800 043 40 50. The helpline is open Monday to Friday 8am to 8pm and Saturday 9am to 3pm. Authorised and regulated by the Financial Conduct Authority No 692492. Charity registered in England and Wales No 1148498. Debt Advice Foundation 2016