Debt advice forms a part of an emerging advice area called financial capability. Essentially being financially capable is the ability to manage your money as effectively as possible and therefore make better financial decisions for you and your family. Financial capability education is intended to reduce the level of indebtedness in the future and, particularly, for future generations. It broadly covers the following areas:
Keeping track – knowing what your income is and where it is spent
Making Ends Meet – Balancing the budget, particularly for an expensive week or month
Planning Ahead – Where are you in your life now and where do you want to be? Are you thinking about getting married, having children or buying your first home?
Choosing Financial Products – If you are purchasing a household or financial product, are you getting the best deal possible that meets your needs?
Staying Informed – Financial products are changing and developing all the time. For example, is your bank account still working for you?
There is much more information about financial capability in the UK and a new emerging definition of this that takes into account our attitudes to money and our opportunities on the Money Advice Service website.