New guidelines to help people in debt have been introduced by organisations keen to give support to people trying to get back on track. Working together to improve the service for clients using the Common Financial Statement the Money Advice Trust, British Bankers Association and Finance and Leasing Association have now published best practice checklists aimed at creditors and advisers to ensure that people in debt are given as much support as possible to help them to get back on an even keel.

The checklists will benefit people trying to repay their debts in a number of ways. By ensuring the lines of communication between adviser and creditors are now clear, the client will receive clearer recommendations about how they can repay debts. This will also help to minimise delays and requests for more information aiming to reduce stress at an already difficult time. The checklists should also help money advisers to focus on more complex cases, as using the new system will lead to fewer repeat appointments. Additionally, they will also benefit creditors by helping to ensure there are regular repayments from clients, offering the best chance to maintain good relations with indebted clients.

The Common Financial Statement has been warmly received across the industry, and the publication of the checklists in collaboration between the sectors will encourage best practice in the field.

Joanna Elson, Chief executive, Money Advice Trust said:

“This is a really positive step towards ensuring the advice and credit sectors work together to benefit people in debt. The Common Financial Statement is a fantastic resource and these checklists will go further to ensure that agreements are reached as quickly as possible, saving time for both sectors and ensuring a positive experience for the client.”

Eric Leenders, Executive Director for Retail Banking at the British Bankers Association said:

"For people in financial difficulties, filling in a Common Financial Statement can be enormously helpful: everybody gets a clear picture of where and how the debts are owed. All clients of debt advice agencies need to know they will be treated fairly, sympathetically and positively. These checklists will help to ensure they get consistently helpful support."

Fiona Hoyle, Head of Consumer Finance and Anti-Fraud at the Finance & Leasing Association said:

“Our members accept the Common Financial Statement as a part of their commitment to our Lending Code. It is a key tool in ensuring that the process of helping people to manage their debts is more efficient. These checklists will help to reinforce the good work that lenders are already doing to ensure that they take a positive, sympathetic and informed view of their customer’s financial situation.”

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