Treasury offers helping hand to credit crisis victims

08 July 2008 / by Rebecca Sargent
The Treasury has announced a plan of action to give people more support in tackling their money worries. The proposed assistance was announced yesterday by Yvette Cooper, chief secretary to the Treasury and Hector Sants, CEO of Financial Services Authority (FSA).

The key concerns of the Financial Capability Action Plan are to offer free advice and assistance to people suffering at the hands of the credit crisis; and it also proposes to make progress towards the FSA's goal of making sure people are better informed and educated about money.

The plan of action will include moves such as the development of a one-stop-shop for information and support, based around the FSA's Moneymadeclear website. A new £12million programme will offer free advice on matters such as budgeting and money management, which could potentially help hundreds of thousands of households that are currently struggling in the UK.

Launching the Action Plan, chief secretary to the Treasury, Yvette Cooper MP, said: "Many families are feeling the pinch as a result of high fuel and food prices, and the impact of the credit crunch on mortgage lending. But when people are facing money worries they often don't know where to turn. We need to make it much easier for people to get access to information, help and advice."

Commenting of the working partnership between the Treasury and FSA, Hector Sants, chief executive of the FSA, said: "The FSA has made great strides in tackling low levels of financial capability in the UK and helping everyone to get to grips with their finances.

"In partnership with the Government, we want to develop money guidance to help consumers to be able to make sound money choices, to know what questions to ask of their financial service provider, and, just as importantly, to have the confidence to do so and know where to go if things go wrong."

As the cost of living rises, fuel bills and food costs are hitting new highs, suggesting this plan has come in the nick of time to help families who could otherwise find themselves deep in financial trouble as the credit crisis looks set to morph into a recession.

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