MSE News: 'Everyone should have access to banking, affordable credit and be encourage

Former_MSE_Helen

A financial health minister is needed to help ensure everyone has access to basic facilities, a new report says...

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'Everyone should have access to banking, affordable credit and be encouraged to save'




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Credit-Crunched

I agree to an extent, however, i feel that credit should be earned, not a given right. People should prove that they are a safe bet, for the lender to engage with.

Also, protection at the right price. A decreasing term life policy for a mortgage of around £150k for a healthy young person is less a month than a big mac meal. So I don't think pricing is the issue, more priorities or lack of, and the it won't happen to me, someone else will pick up the tab mindset

Archi_Bald

Here's the summary of my views on this:

There will always be some adults that will require help with their finances, for a variety of reasons. Some will, for a variety of reasons, have financial problems all their lives, regardless of what help they are being offered.

The number of people needing help could be very dramatically reduced if money matters did figure throughout the school life of pupils (which it is now beginning to do but who teaches the teachers?). Just addressing the needs of adults is leaving it way too late.

Bottom line I would support a Minister who looks after the issue as it will be of benefit to the entire society if people are financially educated, and know how they can keep educated throughout their life.

grumbler

Sir_Sherard_Cowper-Coles wrote:

"... every adult ... has access to affordable credit, ...."

IMHO Sir Sherard is talking nonsense unless he is prepared personally to give credit to any adult.

eskbanker

grumbler wrote: »

IMHO Sir Sherard is talking nonsense unless he is prepared personally to give credit to any adult.

Agreed - interesting to note that more of the quote is "every adult ... has access to affordable credit, is encouraged to save, ..." as if it should be that way round!

Ken68

Whatever happened to saving up until you can afford the goods.

colsten

The term "affordable credit" can mean different things to different people. I read it as credit that the person who takes out the credit can demonstrably afford to pay back. Others will read it as "credit with low interest", or "credit AER% not more than BoE base rate + x%".

Using my definition of the term, I am fully supportive of the notion that everyone should have access to such "affordable credit". And I think it is basically what we already have......together with the freedom to turn down credit offers we don't want.

Sir Sherard probably has a different definition that I might or might not agree with.

jimjames

Archi_Bald wrote: »

The number of people needing help could be very dramatically reduced if money matters did figure throughout the school life of pupils (which it is now beginning to do but who teaches the teachers?). Just addressing the needs of adults is leaving it way too late.

Good point about who teaches the teachers.

Even a financial journalist for one of the national papers admitted the can't move bank account because they're constantly overdrawn and uses a savings account at 0.5% because it's too much hassle to move.

If that's the standard of people educating finance through the press for their job I don't hold out too much hope for someone who has it tagged on as part of their role.

pinkdalek

Ken68 wrote: »

Whatever happened to saving up until you can afford the goods.

You mean like for a house?

Herbalus

Credit-Crunched wrote: »

I agree to an extent, however, i feel that credit should be earned, not a given right. People should prove that they are a safe bet, for the lender to engage with.

I agree credit should be only given to 'responsible' people, but how would people prove they are a safe bet? I certainly couldn't prove I was responsible when I got my first credit card (a student with no regular income), but I've never carried a balance over or bought anything I couldn't afford.

The credit system we have, where credit is limited to those without a history of borrowing and repaying, seems as good a system I can think of*.

*apart from the cowboy payday lending industries etc.

pinkdalek

Better understanding of how finances work should be educated in schools. Problem in this country now is we have several generations brought up with little or no fiscal knowledge and have no appreciation of the value of money.

Separating what Joe Public sees as the bank and the banking system that brought this country to rack and ruin would help to.

Financial Institutions not having sales targets and being able to speak to their clients doing for them what they want and need and not what some chief executive needs.