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Debt Management Toolkit

This online content has been designed to complement and support the low level debt and budgeting training course that has been delivered across Cardiff and the Vale of Glamorgan in 2013/2014. 


It is a resource for frontline users to support when working with clients either out in the client’s home or for those catching up with work in the office.  It contains links to resources that you should find useful to help those experiencing debt in the local community.


This content covers the following broad categories:

  • Project Information
  • General Information
  • Budgeting and the Financial Statement
  • Debt – The Consequences of Non Payment
  • Debt – Common Collection Problems
  • Debt – Challenging Debt
  • Debt – The Options
  • Further Links and Resources


The Debt Project

The project has been funded by the Welsh Government as part of its Supporting People programme across Cardiff and the Vale of Glamorgan.  The project is managed by the Supporting People team based in Cardiff County Council and is delivered by Cardiff and the Vale Citizens Advice Bureau. The aim of the project is to help support workers assist their service users and enable them to manage their income, maintain their rent and avoid homelessness. 


The project included a one day training course; a manual that can be used in the office or when visiting clients or service users at home.  It also includes this online content via the Cardiff Housing website and the Vale of Glamorgan Housing website.


This information will give an understanding of budgeting and debt to allow and enable you to assist and refer clients to appropriate organisations that can offer support.


What information is or is not included?

The Cardiff and Vale of Glamorgan Housing websites already contain information on budgeting, debt, housing and income maximisation that is aimed at the general public.  Much of this is very useful for frontline support workers.  CAB content is focused wholly on support workers and how you can assist and enable your service users to take control of their finances.



General Information

Consumer Credit Licences

All businesses engaged in the provision of debt advice, debt management and credit information services are required to hold a consumer credit licence.  

Until the end of March 2014, the OFT is responsible for licensing businesses.  There are different categories of licence (see s1.3 of the Debt Management Guidance, March 2012 (OFT366rev) in particular, category D regarding debt adjusting). If you are not sure whether your work requires a licence please discuss this with your manager. 


The Financial Conduct Authority takes over responsibility for credit licences from the Office of Fair Trading from 1st April 2014 and these licence conditions may change.  If you already have an OFT credit licence, you must register for interim permission by 31st March 2014. For up to date information about this please visit the Financial Conduct Authority website.


Financial Capability

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.