Demand for debt advice tipped to grow

Aegon states that as people become more aware about their finances, they will want quality debt help and other financial advice to improve their monetary capabilities.

“As momentum builds behind the government’s financial capability strategy, it’s significant that IFAs [independent financial advisers] share our views on the value of this type of initiative – and that they see a clear link between greater financial awareness and people seeking independent financial advice,” said Aegon UK chief executive Otto Thoresen.

His comments come as the government finally takes action to increase financial awareness as worries that Britain is heading to a ‘debt doomsday’ emerge.

A lack of financial knowledge has helped drive people into debt worries, with the survey finding that nearly two thirds of IFAs think that lack of education and understanding of individual financial needs have been ‘very important’ in contributing to the savings gap.

However, advice on becoming debt free is available and as education improves, more people seem likely to seek out such help.