Debt Statistics A consumer focus June 2016
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 2016 Page 2
Message from the Chair Welcome to Debt Advice Foundation's June 2016 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 2016 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 2016 Page 4
Debt Advice Foundation 2016 Page 5
Jun 15 12 month average May 16 Jun 16 Jun 15 12 month average May 16 Jun 16 0. 4.4% 4.4% 3.4% 3.5% 3.4% 2.3% 2.3% 3.4% 4. 6. 6.5% 4. 8.5% 8. 13.3% 11.1% 12. 12. 16. 16.1% 18. 19. Repayment term (months) 132 127 106 107 -income ratio 23. Jun 15 12 month average May 16 Jun 16 5,286 885 737 1,680 1,551 1,643 1,503 1,701 1,541 1,519 1,358 1,399 1,107 1,191 1,013 Monthly amount ( ) Impoverishment index 8,700 1,071 382 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16-5000 5000-10000 10000-15000 15000-20000 20000-25000 25000-30000 30000-35000 35000-40000 40000-45000 45000-50000 50000-55000 17,059 17,746 16,990 17,183 14,048 19,612 16,148 17,317 16,375 15,048 16,080 14,120 Number of creditors 35.6% 17.1% 13. 13. 5.5% 2.1% 2.1% 2.1% 3.4% 2.1% 0. Debt Advice Foundation - Debt Helpline Statistics (June 2016) 1. Overview This section provides an overview of callers to the charity's helpline in June 2016. 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 2,061,556 of unsecured debt in June 2016 at an average of 14,120 per case (full financial assessments). c1.1 overview c1.2 profile (June 2016) Average unsecured debt 1 Average number of unsecured creditors 25,000 6.97 20,000 6.80 6.75 15,000 6.37 6.12 6.07 6.20 6.33 6.30 6.31 6.22 10,000 6.08 5,000 7.2 7.0 6.8 6.6 6.4 6.2 6.0 5.8 5.6 40. 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 (June 2016) Jun 15 12 month average May 16 Jun 16 6,364 7,414 6,780 7,841 4,860 6,522 10,000 20,000 30,000 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 (June 2016) Net monthly household income Monthly household expenditure 2 Impoverishment index 3 1,800 1,600 1,400 1,200 1,000 800 600 400 200 21.5% 20.3% 18.1% 17. 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. 5% 1.5 Specified cause of financial impairment (June 2016) 1.6 Debt servicing (June 2016) 30. 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 5 140 105% 1 120 8 10 7 7 100 8 80 6 60 40 4 20 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 2016 Page 6
18-24 25-34 35-44 45-54 55-64 65+ 18-24 25-34 35-44 45-54 55-64 65+ 49 77 88 206 67 53 Number of months 21% 23% 2 2 18-24 25-34 35-44 45-54 55-64 65+ 2,276 6,095 924 818 1,412 1,250 2,163 1,923 1,600 1,515 1,427 1,255 1,174 926 9,307 11,869 4,117 Monthly amount ( ) Impoverishment index 3,928 18-24 25-34 35-44 45-54 55-64 65+ 18-24 25-34 35-44 45-54 55-64 65+ 5,161 12,457 21,198 17,537 11,531 13,086 33% 1 5.5% Population weighting index 1 Debt Advice Foundation - Debt Helpline Statistics (June 2016) 2. Age group This section provides an overview of callers to the helpline in June 2016, broken down by age group. The age group with the highest average unsecured debt in June 2016 was the 35-44 age group ( 21,198).The age group with the highest helpline engagement was the 25-34 age group, which was 92% more likely to call the helpline than the UK average. c2.1 Average unsecured debt (June 2016) c2.2 Case weighting (June 2016) 25,000 20,000 15,000 10,000 5,000 Case weighting (June 2016) Regional contact population weighting index 1 35% 2.5 3 1.92 2.0 1.25 1.23 1.07 1.5 0.62 1.0 5% 0.23 0.5 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 (June 2016) 65+ 55-64 45-54 35-44 25-34 18-24 1,036 3,237 6,355 8,524 8,885 3,253 10,000 20,000 30,000 Specified cause of financial impairment (June 2016) 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 (June 2016) Net monthly household income Monthly household expenditure 2 Impoverishment index 3 2,500 32.1% 35. 2,000 1,500 1,000 500 15. 22. 6. 7. 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 (June 2016) 30. 25. 20. 15. 10. 5. 0. 3 5% Loss of job Reduced working hours Pregnancy Illness Divorce Separation Average repayment term (months) 4 to annual income ratio 5 250 91% 93% 10 82% 9 200 74% 6 8 7 150 4 6 5 100 4 3 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 2016 Page 7
Male Female Male Female 99 84 3% 3% 3% 3% 1 Number of months 2 Male Female 8,210 6,306 1,522 1,348 1,541 1,401 4,844 4,566 Monthly amount ( ) Impoverishment index Male Female Male Female 17,210 11,763 45% 55% (main client) Debt Advice Foundation - Debt Helpline Statistics (June 2016) 3. Gender This section provides an overview of callers to the helpline in June 2016, broken down by gender. Males had the highest average amount of debt in June 2016 ( 17,210).The highest weighting of callers to the helpline in the period was females (55%). c3.1 Average unsecured debt (June 2016) c3.2 Case weighting (June 2016) 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 6 5 4 3 c3.3 by type (June 2016) Credit card c3.4 Client financial profile (June 2016) 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 23.4% 1,600 25. 1,550 1,500 1,450 1,400 1,350 1,300 1,250 10. 20. 15. 10. 5. 0. 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 (June 2016) c3.6 Debt servicing (June 2016) 35% 3 5% Loss of job Reduced working hours Pregnancy Illness Divorce Separation Average repayment term (months) 3 to annual income ratio 4 105 94% 10 9 100 8 95 90 64% 7 6 5 4 85 3 80 75 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 2016 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 71 159 55 49 61 44 41 180 119 97 99 6% 33% 33% 33% Number of months 452 5 6 East East of England London North East North West Northern Ireland Scotland South East South West Wales West Yorkshire and the Humber Monthly amount ( ) 2,455 2,225 2,130 2,037 1,341 1,198 1,543 1,181 1,571 1,284 2,400 1,674 1,182 948 1,318 1,217 1,527 1,396 1,078 973 1,349 1,269 1,270 1,235 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 16,330 14,822 7,830 17,862 17,569 31,753 9,521 18,040 15,540 10,151 7,924 15,819 6% 1 2% 1 1% 3% 16% 4% 5% 6% Population weighting index 1 Debt Advice Foundation - Debt Helpline Statistics (June 2016) 4. Region This section provides an overview of callers to the helpline in June 2016, broken down by region. The region with the highest average unsecured debt in June 2016 was Northern Ireland ( 31,753).The region with the highest helpline engagement was North West which was 62% more likely to call the helpline than the UK average. c4.1 Average unsecured debt (June 2016) c4.2 Case weighting (June 2016) 35,000 30,000 25,000 20,000 15,000 10,000 5,000 5% Case weighting (June 2016) Regional contact population weighting index 1 0.86 0.88 1.44 0.51 1.62 0.42 0.24 1.20 1.06 0.86 0.74 0.62 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 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 (June 2016) Credit card c4.4 Client financial profile (June 2016) 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 (June 2016) c4.6 Net monthly household income Monthly household expenditure 2 Iimpoverishment index 3 3,000 50. 6 2,500 5 2,000 1,500 1,000 500 11.1% 8.3% 7.1% 33.3% 19.2% 0. 0. 12.5% 30. 33.3% 22.2% 4 3 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 (June 2016) 7 6 5 4 3 Loss of job Reduced working hours Pregnancy Illness Divorce Separation Average repayment term (months) 4 to annual income ratio 5 1 1 104% 1 96% 93% 85% 10 7 500 450 400 350 300 250 200 150 100 50 0 55% 5 4 6 4 8 6 4 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 2016 Page 9
84 91 52 87 3% Number of months 22% 23% 2,359 5,251 750 637 17,243 6,867 8,718 3,324 Monthly amount ( ) 2,127 1,844 1,386 1,139 1,555 1,416 Impoverishment index 4,329 4,850 9,515 25,821 12,815 12,034 1 2% 66% Debt Advice Foundation - Debt Helpline Statistics (June 2016) 5. Residential status This section provides an overview of callers to the helpline in June 2016, broken down by residential status. Homeowner was the group with the highest average unsecured debt ( 25,821) in June 2016. Tenant was the most likely group to call the charity for advice (66%). c5.1 Average unsecured debt (June 2016) c5.2 Case weighting (June 2016) 30,000 7 25,000 6 20,000 15,000 10,000 5,000 Homeowner Unknown Tenant 5 4 3 Homeowner Unknown Tenant c5.3 c5.5 by type (June 2016) 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 (June 2016) c5.4 c5.6 Client financial profile (June 2016) Net monthly household income Monthly household expenditure 1 Impoverishment index 2 2,500 24.5% 30. 2,000 25. 1,500 1,000 500 10. 3. 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 (June 2016) 20. 15. 10. 5. 0. 5% Homeowner Unknown Tenant Loss of job Reduced working hours Pregnancy Illness Divorce Separation Average repayment term (months) 3 to annual income ratio 4 100 91% 10 90 82% 9 80 74% 8 70 7 60 4 6 50 5 40 4 30 3 20 10 0 Homeowner Unknown Tenant 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 2016 Page 10
Self-employed d (Other) d (JSA) Retired Self-employed d (Other) d (JSA) Retired 78 56 83 26 168 4% 4% 1 1 1 2 33% Neg DI, can't repay 53 Number of months 75% Selfemployed d (Other) d (JSA) Retired 1,802 1,554 1,937 1,710 1,382 1,206 430 410 1,251 1,199 676 709 Monthly amount ( ) 1,088 886 Impoverishment index d (Other) d (JSA) Retired Selfemployed Selfemployed d (Other) d (JSA) Retired 19,380 12,616 14,646 513 8,746 7,809 10,763 43% 1 3% 1% 1 Debt Advice Foundation - Debt Helpline Statistics (June 2016) 6. Employment status This section provides an overview of callers to the helpline in June 2016, broken down by status. was the group with the highest average unsecured debt ( 19,380) in June 2016. Fulltime was the most likely group to call us for advice (43%). c6.1 Average unsecured debt (June 2016) c6.2 Case weighting (June 2016) 25,000 20,000 15,000 10,000 5,000 5 45% 4 35% 3 5% c6.3 by type (June 2016) 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 5,000 10,000 15,000 20,000 25,000 Credit card Unsecured loan c6.4 Client financial profile (June 2016) Net monthly household income Monthly household expenditure 1 Impoverishment index 2 2,500 34.6% 40. 2,000 28.6% 35. 30. 1,500 20. 25. 14.5% 20. 1,000 15. 8. 10. 500 0. 0. 5. 0. c6.5 Specified cause of financial impairment (June 2016) 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 (June 2016) 8 7 6 5 4 3 Loss of job Reduced working hours Pregnancy Illness Divorce Separation Average repayment term (months) 3 to annual income ratio 4 180 91% 93% 10 82% 160 9 74% 140 6 8 120 7 4 6 100 5 80 4 60 3 40 20 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 2016 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+ 95 128 61 115 78 100 47 250 4% 4% 2 Number of months 4 5 5 1 adult/0 1 adult/1 1 adult/2 1 adult/3+ 2 adults/0 2 adults/1 2 adults/2 2 adults/3+ 943 825 Monthly amount ( ) 1,371 1,270 1,492 1,410 1,212 1,116 1,783 1,616 2,225 2,046 3,688 2,953 2,396 2,230 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+ 11,206 12,979 4,984 11,090 13,020 18,016 34,387 41,454 3 1 12% 3% 6% 3% Debt Advice Foundation - Debt Helpline Statistics (June 2016) 7. Household demographics This section provides an overview of callers to the helpline in June 2016, broken down by household demographics. 2 adults & 3+ was the group with the highest average unsecured debt ( 41,454) in June 2016. 1 adult & 0 was the most likely group to call us for advice (3). c7.1 Average unsecured debt (June 2016) c7.2 Case weighting (June 2016) 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 45% 4 35% 3 5% c7.3 by type (June 2016) 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 (June 2016) Net monthly household income Monthly household expenditure 1 Impoverishment index 2 4,000 40. 45. 3,500 40. 3,000 35. 25. 30. 2,500 21.4% 19.3% 20. 25. 2,000 17.6% 20. 1,500 12. 15. 1,000 10. 500 0. 5. 0. c7.5 Specified cause of financial impairment (June 2016) 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 (June 2016) 6 5 4 3 Loss of job Reduced working hours Pregnancy Illness Divorce Separation Average repayment term (months) 3 to annual income ratio 4 300 91% 93% 10 250 74% 82% 9 6 8 200 7 4 6 150 5 4 100 3 50 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 2016 Page 12
Outcome Bankruptcy (7) DRO (5) IVA/Trust Deed (5) Budgeting advice (5) Informal Arrangement (4) Other (3) 3rd party call (15) Benefits (8) Credit rating (7) Legal (6) Current insolvency case (5) Disputed liability (4) Bailiff assistance (4) Other (22) Enquiry Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 3 3 23% 1 23% 1 24% 2 2 1 2 22% 1 42% 36% 34% 32% 32% 33% 32% 32% 32% 2 12% 12% 12% 16% 1 21% 26% 26% 2 2 26% 23% 2 22% 3 61% 63% 2 5 64% 66% 6 6 6 6 6 6 71% 1 1 16% 1 1 16% 16% Debt Advice Foundation - Debt Helpline Statistics (June 2016) 8. Helpline outcomes This section provides an overview of helpline activity in June 2016, including the types of enquiries dealt with as well as the recommendations made by the charity's advisers. 3 of callers to the charity's helpline required a full financial assessment by a helpline adviser whilst 61% 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 3 10 9 8 7 6 5 4 3 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 June 2016) Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 22% 24% 1 23% 24% 21% 22% 21% 1 22% 12% 12% 5% 6% 6% 6% 1 12% 16% 1 24% 23% 1 1 3rd party call Other 5 10 Bailiff assistance Benefits Council Tax Credit rating Current insolvency case Disputed liability Housing assistance Legal Mortgage Financial assessment outcomes (29) Non-financial assessment outcomes (71) 8.5 Advice take-up (June 2016) 10 9 8 7 6 5 4 3 3 4 1 Advice recommended by adviser 2 1% 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 (June 2016) 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 2016 Page 13
Appendix (data tables) T1.1 - overview Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Average unsecured debt 17,059 17,746 16,990 17,183 14,048 19,612 16,148 17,317 16,375 15,048 16,080 14,120 Average number of unsecured creditors 6.37 6.12 6.80 6.07 6.20 6.75 6.97 6.33 6.30 6.08 6.31 6.22 T1.2 - profile (June 2016) - 5000 5000-10000 10000-15000 15000-20000 20000-25000 25000-30000 30000-35000 35000-40000 40000-45000 45000-50000 50000-55000 Category weighting 35.6% 17.1% 13. 13. 5.5% 2.1% 2.1% 2.1% 3.4% 2.1% 0. T1.3 - by type (June 2016)* Jun 15 12 month average May 16 Jun 16 Credit card 7,841 6,780 7,414 6,364 Unsecured loan 8,700 6,522 4,860 5,286 Other debts 382 1,191 1,399 885 Overdraft 1,071 1,013 1,107 737 Store card 542 588 403 430 Short term loan 245 281 297 370 Utility debt 226 299 291 174 Benefit overpayment 93 221 299 267 Council tax debt 114 233 324 87 Crown tax debt 1,414 383 291 36 Trade debt 1,141 142 7 33 * 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 (June 2016) Jun 15 12 month average May 16 Jun 16 Net monthly household income 1,680 1,643 1,701 1,519 Monthly household expenditure 1,551 1,503 1,541 1,358 Impoverishment index T1.5 - Specified cause of financial impairment (June 2016) Jun 15 12 month average May 16 Jun 16 Loss of job 1 24% Reduced working hours 3% 5% Pregnancy 4% 3% 2% Illness 6% Divorce 4% 4% 2% 5% Separation 1 3% 16% Other 31% 45% 5 55% T1.6 - Debt servicing (June 2016) Jun 15 12 month average May 16 Jun 16 Average repayment term (months) 132 127 106 107 to annual income ratio 105% 8 7 7 Debt Advice Foundation 2016 Page 14
Appendix (data tables) T2.1 - Average unsecured debt (age group) 18-24 25-34 35-44 45-54 55-64 65+ Average unsecured debt (June 2016) 5,161 12,457 21,198 17,537 11,531 13,086 T2.2 - Case weighting (age group) 18-24 25-34 35-44 45-54 55-64 65+ Case weighting (June 2016) 13. 32. 19. 19.2% 8. 5.5% Regional contact population weighting index 124. 192.3% 122. 107.2% 62.3% 23.2% T2.3 - Average debt by type (age group)* 18-24 25-34 35-44 45-54 55-64 65+ Credit card 1,036 3,237 9,307 11,869 6,355 8,524 Unsecured loan 2,276 6,095 8,885 3,253 4,117 3,928 Other debts 811 770 545 2,088 57 125 Overdraft 377 990 888 711 220 500 Store card 145 297 435 601 967 444 Short term loan 458 394 262 200 832 240 Utility debt 106 392 19 125 26 Benefit overpayment 164 186 717 176 82 Council tax debt 51 112 145 70 12 Crown tax debt 26 143 Trade debt 166 * 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 924 1,412 2,163 1,600 1,427 1,174 Monthly household expenditure 818 1,250 1,923 1,515 1,255 926 Impoverishment index 15. 22. 6. 32.1% 7. 0. T2.5 - Cause of financial impairment (age group) 18-24 25-34 35-44 45-54 55-64 65+ Loss of job 0. 23.1% 21.4% 6. 0. 20. Reduced working hours 14.3% 7. 0. 0. 12.5% 0. Pregnancy 0. 0. 0. 0. 0. 0. Illness 0. 7. 7.1% 13.3% 0. 0. Divorce 0. 0. 7.1% 6. 12.5% 0. Impoverishment index 15. 22. 6. 32.1% 7. 0. Impoverishment index 15. 22. 6. 32.1% 7. 0. T2.6 - Debt servicing (age group) 18-24 25-34 35-44 45-54 55-64 65+ Average repayment term (months) 49 77 88 206 67 53 to annual income ratio 4 74% 82% 91% 6 93% Debt Advice Foundation 2016 Page 15
Appendix (data tables) T3.1 - Average unsecured debt (gender) Male Female Average unsecured debt (June 2016) 17,210 11,763 T3.2 - Case weighting (gender) Male Female Case weighting (June 2016) 45.4% 54.6% T3.3 - Average debt by type (gender)* Male Female Credit card 8,210 4,844 Unsecured loan 6,306 4,566 Other debts 962 878 Overdraft 1,065 469 Store card 383 496 Short term loan 368 365 Utility debt 119 217 Benefit overpayment 87 428 Council tax debt 46 127 Crown tax debt 19 52 Trade debt 62 * 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 1,522 1,541 Monthly household expenditure 1,348 1,401 Impoverishment index 15. 22. T3.5 - Cause of financial impairment (gender) Male Female Loss of job 16. 9. Reduced working hours 6. 3.2% Pregnancy 0. 0. Illness 6. 3.2% Divorce 6. 3.2% Impoverishment index 15. 22. Impoverishment index 15. 22. T3.6 - Debt servicing (gender) Male Female Average repayment term (months) 99 84 to annual income ratio 94% 64% Debt Advice Foundation 2016 Page 16
Appendix (data tables) T4.1 - Average unsecured debt (region) East East of England London North East North West Average unsecured debt (June 2016) 16,330 14,822 7,830 17,862 Northern Ireland 17,569 31,753 Scotland South East South West Wales West Yorkshire and the Humber 9,521 18,040 15,540 10,151 7,924 15,819 T4.2 - Case weighting (region) East East of England London North East North West Case weighting (June 2016) 6.2% 8.2% 19.2% 2.1% Northern Ireland 17. 0. Scotland South East South West Wales West Yorkshire and the Humber 3.4% 16.4% 8. 4.1% 5.5% 6.2% Regional contact population weighting index 85. 88.1% 144. 51. 161.6% 24.1% 41.5% 119.6% 106. 86.3% 62. 74.5% T4.3 - Average debt by type (region)* East East of England London North East North West Northern Ireland Credit card 9,734 6,935 3,975 8,419 3,655 28,965 Scotland South East South West Wales West 3,548 9,660 8,696 469 3,536 Yorkshire and the Humber 9,479 Unsecured loan 3,310 2,912 1,469 8,195 11,752 2,788 6,094 6,533 3,959 4,589 2,086 4,891 Other debts 255 3,721 1,084 392 510 276 1,093 2,423 409 56 Overdraft 1,748 480 720 333 542 326 1,308 792 817 145 150 Store card 695 423 81 453 310 202 595 327 528 824 1,035 Short term loan 315 389 569 417 484 1,092 83 74 1,019 246 Utility debt 253 45 22 45 447 132 180 202 430 Benefit overpayment 199 1,812 166 82 600 405 25 Council tax debt 92 350 100 72 63 27 105 281 Crown tax debt 43 48 350 Trade debt 401 * 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 2,455 2,130 1,341 1,543 1,571 2,400 Scotland South East South West Wales West 1,182 1,318 1,527 1,078 1,349 Yorkshire and the Humber 1,270 Monthly household expenditure 2,225 2,037 1,198 1,181 1,284 1,674 948 1,217 1,396 973 1,269 1,235 Impoverishment index 15. 22. 6. 32.1% 7. 0. 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 33.3% 20. 12.5% 0. 8.3% 0. Scotland South East South West Wales West 0. 12.5% 25. 20. 0. Yorkshire and the Humber 0. Reduced working hours 0. 0. 6.3% 0. 0. 0. 0. 12.5% 0. 0. 33.3% 0. Pregnancy 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. Illness 0. 0. 12.5% 0. 0. 0. 0. 0. 25. 0. 0. 0. Divorce 0. 20. 12.5% 0. 0. 0. 0. 0. 0. 0. 0. 0. Impoverishment index 15. 22. 6. 32.1% 7. 0. 0. 0. 0. 0. 0. 0. Impoverishment index 15. 22. 6. 32.1% 7. 0. 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) 71 159 55 49 61 44 Scotland South East South West Wales West 41 180 119 97 99 Yorkshire and the Humber 452 to annual income ratio 55% 5 4 96% 93% 1 6 1 85% 7 4 104% Debt Advice Foundation 2016 Page 17
Appendix (data tables) T5.1 - Average unsecured debt (housing status) Homeowner Unknown Tenant Average unsecured debt (June 2016) 9,515 25,821 12,815 12,034 T5.2 - Case weighting (housing status) Homeowner Unknown Tenant Case weighting (June 2016) 14. 17. 2.1% 65. T5.3 - Average debt by type (housing status)* Homeowner Unknown Tenant Credit card 2,359 17,243 8,718 4,329 Unsecured loan 5,251 6,867 3,324 4,850 Other debts 551 1,459 853 Overdraft 469 986 333 728 Store card 229 384 504 Short term loan 605 214 439 335 Utility debt 18 17 261 Benefit overpayment 243 115 331 Council tax debt 32 17 124 Crown tax debt 56 Trade debt 51 * 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 750 2,127 1,386 1,555 Monthly household expenditure 637 1,844 1,139 1,416 Impoverishment index 15. 22. 6. 32.1% T5.5 - Cause of financial impairment (housing status) Homeowner Unknown Tenant Loss of job 22.2% 15.4% 0. 10. Reduced working hours 11.1% 7. 0. 2.5% Pregnancy 0. 0. 0. 0. Illness 11.1% 0. 0. 7.5% Divorce 0. 0. 0. 7.5% Impoverishment index 15. 22. 6. 32.1% Impoverishment index 15. 22. 6. 32.1% T5.6 - Debt servicing (housing status) Homeowner Unknown Tenant Average repayment term (months) 84 91 52 87 to annual income ratio 4 74% 82% 91% Debt Advice Foundation 2016 Page 18
Appendix (data tables) T6.1 - Average unsecured debt ( status) employmen t Selfemployed Selfemployed Average unsecured debt (June 2016) 19,380 12,616 14,646 513 d (Other) d (JSA) 8,746 7,809 T6.2 - Case weighting ( status) employmen t Selfemployed Case weighting (June 2016) 43.4% 17.5% 3.5% 0. d (Other) d (JSA) 18.2% 9. T6.3 - Average debt by type ( status)* employmen t Selfemployed Credit card 8,293 6,595 10,945 d (Other) d (JSA) 2,762 2,617 Unsecured loan 8,354 2,198 1,817 4,324 2,569 Other debts 1,532 279 157 364 1,185 Overdraft 1,108 705 850 158 636 Store card 441 370 248 356 584 405 Short term loan 452 563 266 174 Utility debt 160 420 80 138 67 Benefit overpayment 71 1,043 707 130 113 Council tax debt 95 202 45 42 Crown tax debt 65 49 Trade debt 192 * 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 1,802 1,937 1,382 430 d (Other) d (JSA) 1,251 676 Monthly household expenditure 1,554 1,710 1,206 410 1,199 709 Impoverishment index 15. 22. 6. 32.1% 7. 0. T6.5 - Cause of financial impairment ( status) employmen t Selfemployed Loss of job 3.6% 9.1% 0. 0. d (Other) d (JSA) 18.2% 75. Reduced working hours 7.1% 9.1% 0. 0. 0. 0. Pregnancy 0. 0. 0. 0. 0. 0. Illness 3.6% 0. 0. 0. 18.2% 25. Divorce 7.1% 0. 0. 0. 9.1% 0. Impoverishment index 15. 22. 6. 32.1% 7. 0. Impoverishment index 15. 22. 6. 32.1% 7. 0. T6.6 - Debt servicing ( status) employmen t Average repayment term (months) 78 56 83 26 d (Other) 168 d (JSA) Neg DI, can't repay to annual income ratio 4 74% 82% 91% 6 93% Debt Advice Foundation 2016 Page 19
Appendix (data tables) T7.1 - Average unsecured debt (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 unsecured debt (June 2016) 11,206 12,979 4,984 11,090 13,020 18,016 34,387 41,454 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 (June 2016) 39. 17.1% 11.6% 2. 9.6% 10.3% 6.2% 3.4% 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 3,596 5,420 2,077 4,685 6,759 9,186 21,026 22,594 Unsecured loan 5,798 4,023 1,344 5,168 4,522 5,935 10,668 2,944 Other debts 588 1,035 267 67 275 3,665 269 Overdraft 527 1,066 360 150 249 778 2,386 1,310 Store card 338 755 415 698 493 233 396 Short term loan 513 429 343 464 7 116 Utility debt 101 30 105 2,043 154 240 38 Benefit overpayment 225 204 48 Council tax debt 21 50 213 129 82 Crown tax debt 70 73 Trade debt * 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 943 1,371 1,492 1,212 1,783 2,225 3,688 2,396 Monthly household expenditure 825 1,270 1,410 1,116 1,616 2,046 2,953 2,230 Impoverishment index 15. 22. 6. 32.1% 7. 0. 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 12.5% 7.1% 25. 0. 0. 40. 25. 0. Reduced working hours 4.2% 7.1% 0. 0. 14.3% 0. 0. 0. Pregnancy 0. 0. 0. 0. 0. 0. 0. 0. Illness 8.3% 0. 0. 50. 14.3% 0. 0. 0. Divorce 4.2% 0. 25. 0. 14.3% 0. 0. 0. Impoverishment index 15. 22. 6. 32.1% 7. 0. 0. 0. Impoverishment index 15. 22. 6. 32.1% 7. 0. 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) 95 128 61 115 78 100 47 250 to annual income ratio 4 74% 82% 91% 6 93% Debt Advice Foundation 2016 Page 20
Appendix (data tables) T8.1 -Case outcome analysis Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Financial assessment outcomes 3 3 42% 36% 34% 32% 32% 33% 32% 32% 32% 2 Non-financial assessment outcomes 61% 63% 5 64% 66% 6 6 6 6 6 6 71% T8.2 -Financial assessment outcomes Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Bankruptcy 23% 1 23% 1 24% 2 2 1 2 22% 1 Debt Arrangement Scheme 1% 1% 1% 1% 2% 1% 1% 3% Informal Arrangement 12% 12% 12% 16% Debt Relief Order 1 21% 26% 26% 2 2 26% 23% 2 2 22% 3 Individual Voluntary Arrangement/Trust Deed 1 1 16% 1 1 Other Budgeting advice 16% 16% T8.3 -Non-financial assessment outcomes Jun 16 May 16 Apr 16 Mar 16 Feb 16 Jan 16 Dec 15 Nov 15 Oct 15 Sep 15 Aug 15 Jul 15 3rd party call 22% 1 21% 22% 21% 24% 23% 1 24% 22% Bailiff assistance 6% 5% 12% Benefits 12% Council Tax 2% 1% 3% 1% 2% 3% 2% 2% 1% 1% 1% Credit rating 3% 4% 5% 5% 5% 6% Current insolvency case 6% Disputed liability 6% 6% 6% 5% 5% Housing assistance 4% 4% 5% 4% 4% 4% 6% 3% 5% 6% 4% 5% Legal 6% Mortgage 4% 4% 3% 4% 3% 4% 3% 3% 3% 3% 3% 3% Other 1 1 23% 24% 1 16% 12% 1 T8.5 -Advice take-up (June 2016) Advice recommended by adviser Advice chosen by client Bankruptcy 1 1% Debt Arrangement Scheme 3% 3% Informal Arrangement 4 Debt Relief Order 3 2 Individual Voluntary Arrangement/Trust Deed Other 2% Budgeting advice Debt Advice Foundation 2016 Page 21
Appendix (data tables) T8.6 -Weekly call density map (June 2016) Monday Tuesday Wednesday Thursday Friday Saturday 08:00 1. 0. 0.6% 0.6% 0.6% 0. 09:00 2.1% 1.2% 1. 1.4% 1.1% 0.3% 10:00 2.6% 1. 1.4% 1.5% 1. 0. 11:00 1. 2.1% 2.1% 1. 1.4% 0. 12:00 2. 2.1% 1. 2.1% 1.5% 1. 13:00 1.4% 3. 3.2% 2. 2. 0.5% 14:00 3. 1.6% 1.3% 2. 1.5% 0. 15:00 2.6% 2.3% 0. 1.4% 1.4% 0. 16:00 2.3% 2.3% 2.1% 1.3% 1.4% 0. 17:00 1. 1.6% 1. 0. 1.1% 0. 18:00 1.6% 2.4% 1.3% 1. 0.4% 0. 19:00 1. 0. 0.4% 1. 0.4% 0. Debt Advice Foundation 2016 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