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FSA PN/002/2006
11 January 2006

A new on-line “debt test” has been launched to help consumers keep control of their borrowing and to take action in the event of problems.

Developed jointly by the FSA, the BBC and credit rating agency Experian, answering a few simple questions allows consumers to obtain:

• information and feedback on their levels of debt;
• tips on how to avoid getting into debt problems; and
• help to manage any problems they may have

The Debt Test can be accessed at: www.fsa.gov.uk/consumer/debt_test and www.bbc.co.uk/debt.

Vernon Everitt, the FSA’s Director of Retail Themes, said:

"Managing debt effectively is one of the most important things any of us have to do to keep control over our finances. The debt test is a useful tool to help consumers gain a fast overview of their borrowing, avoid debt becoming problematic and sort out what to do if it is already causing concern."

Peter Clifton, Head of BBC News Interactive, said:

"In the wake of the Christmas period, there could be no better time to be launching the debt test. Debt is a very real problem for many people across the UK, and this is a neat way to help them. It provides clear feedback and links to more information and is just the sort of thing that works really well on the web."

As well as using the BBC and FSA websites, the FSA is working with other potential partners to make the tool more widely available and will explore this possibility further with financial services firms and consumer organisations. The debt test and the wide range of other tools the FSA offers on money management are to be promoted in a new advertising campaign starting next month.

Although the FSA does not regulate unsecured lending or consumer credit, the regulator is committed to helping consumers become more capable and confident. The Debt Test has therefore been delivered as part of the National Strategy for Financial Capability backed by the financial services industry, consumer groups, government and unions.

Notes to editors

1. To take the debt test, please access it on the FSA and BBC websites. The Financial health check, launched in June 2005, can also be accessed on our website.
2. Helping consumers become more capable and confident is the aim of the National Strategy for Financial Capability launched in November 2003. More information on the strategy as well as the latest progress report can be found on our Financial Capability website.
3. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
4. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal, and improve its business capability and effectiveness.