PennySmart*, the Chester-based money, debt and benefits advice organisation, is partnering with TIP (The Insolvency Panel Ltd). The aim is to help improve outcomes in IVAs and to help PennySmart make their debt advice even more timely and accurate.
Free credit reports
PennySmart, a member of AdviceUK, is one of the first subscribers to TIPhub. This is the portal that enables referral to TIP’s panel of IVA providers. TIphub also allows free-to-client FCA-authorised debt advisers to get credit reports for their clients. Free of charge.
PennySmart will use this technology to assist with face-to-face and telephone advice sessions.
PennySmart*, the Chester-based money, debt and benefits advice organisation, is partnering with TIP (The Insolvency Panel Ltd) to help improve outcomes in IVAs and to help PennySmart make their debt advice even more timely and accurate.
TIP will also partner with PennySmart to deliver telephone-based budgeting advice to people in TIP Insolvency Practitioner Panel IVAs during the first three months of their arrangement.
Effective budgeting advice
The aim is not to overload clients, but to help them manage their money simply. Amounts are first allocated to items that must be paid every month. Then, money that needs to be paid at some point and must to be saved for is set aside. Finally, amounts available for day-to-day living costs. are agreed.
PennySmart and TIP will support clients to make the most of their money by helping them create a realistic budget that, allows them to:
- Prioritise spending and set money aside for bills.
- Manage banking and best ways to pay
- Access entitlements/cheaper deals/social tariffs/etc
- Set money aside for an emergency buffer and plan ahead for one-off spends.
Money Advice Service research shows that advice like this significantly reduces early IVA arrears and terminations, helping clients, creditors and insolvency practitioners. Experience suggests two main benefits: The likelihood of the debt/welfare benefit interventions reaching successful conclusion are significantly increased moving clients from financial crisis to stability. Secondly, clients move closer to financial resilience, reducing future risk of falling back into crisis.
TIP is working towards using open banking technology in the near future. This will make this advice more accurate, focused and timely and enable positive interventions whenever a client of TIP’s panel’s circumstances change.
Use this button if you are a free-to-client debt advisor and would like to register for more information about TIPhub (scroll down after clicking to find the form).
*Pennysmart CIC provides outsourced telephone based advice & casework support services for social landlords, local authorities and charitable trusts. They have championed the integration of budgeting and money management support within debt and WB advice setting since 2009.