ClearScore teams up with StepChange
Credit score agency ClearScore has partnered with debt advice charity StepChange to help users manage their money.
The partnership comes amid the enduring cost-of-living crisis which continues to put pressure on household finances.
ClearScore’s data shows that the number of people missing two or more payments on credit cards has increased by 15 per cent since February 2022, and by 5 per cent on loans.
More than half (55 per cent) of Brits believe the next twelve months will worsen their financial situation.
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Meanwhile, StepChange’s latest research found that almost one in six UK adults (15 per cent), equivalent to seven and half million people, has £20 or less left after paying for essentials each month, with one in twelve (8 per cent) having no disposable income at all.
To help combat this, ClearScore will identify situations where people are falling behind on repayments and refer them to StepChange for help, including directing them to the charity’s Money Health Check tool.
In addition, ClearScore users will have access to a range of content from StepChange that improves understanding of debt, such as how to deal with persistent debt, and whether debt advice will affect credit scores.
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“It is a common myth that taking debt advice will affect your credit score. This is simply not true, and we’re teaming up with StepChange to combat these misconceptions,” The ClearScore Group chief executive Justin Basini said.
“The reality is that missed payments will show on your credit report and have an immediate impact on your score, so it pays to act fast if you feel your debts could become a problem. If you’ve got money worries, just know that you are not alone.”
StepChange director of external affairs Richard Lane added: “Time and again our clients tell us they wish they’d reached out for help sooner. But the average StepChange client waits more than a year from the point at which their debt becomes unmanageable before they turn to us for support.
“Through our work with ClearScore we can begin to turn the tide and reach people earlier, catching consumers before they fall into real hardship and ensuring their path to becoming debt free is as quick as possible.”
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