Financial exclusion: Short changed

Simon Blake & Esther de Jong

July 2008, 132 pages

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Woman in debt Imagine life without a bank account. Or a credit card. Imagine having to pay up to £1,000 interest on a loan. Or paying out 19% of your income on debt repayments. Welcome to the world of financial exclusion.

NPC’s report, Short changed, states that financial education and greater access to bank accounts and other products are needed to tackle financial exclusion. It highlights charities working to help people manage their money, get out of debt and access affordable financial products.

Did you know?

More than 2 million people have no bank account.
3 million are unable to obtain mainstream credit.
On average, 292 people are declared bankrupt or insolvent every day.

Private donors can make a difference by supporting charities that are:

offering effective financial education;
providing face-to-face, 'holistic' advice to those in debt;
encouraging and enabling third-sector lenders; and
researching and campaigning on behalf of financial exclusion issues.

‘I still find it incredible that in such a prosperous society as ours, so many people are living in poverty as a result of being financially excluded. Some people struggle even to get a bank account, and get by day-to-day living cash in hand. One charity told us about Janet, who used to go for days without food or electricity, living by candlelight, so she could pay back a high-interest loan. This isn’t a Dickens novel. It’s the reality of financial exclusion.'
Esther de Jong, Research analyst

Charity insight

Of the ten most deprived boroughs in England, four are in east London.

QUAKER SOCIAL ACTION runs financial education projects to help low-income families make the most of their money.

Quaker Social Action