Credit Strategy has once again joined forces with Experian for Credit Awareness Week. This annual campaign is designed to help people and businesses better understand credit, debt, and the support available to them to improve their financial health. 
  
With living costs still high and more than 20 million people now in financially vulnerable circumstances, the need for clear, accessible support has never been greater. 
  
With that in mind, this year’s Credit Awareness Week is centred around how the industry can support one of the most pressing financial challenges people are facing today: managing debt.

New research reveals a gap in knowledge

Newly commissioned research for the campaign highlights a gap between the impact of managing debt and people’s understanding of the support available.

• 65% of people with debt say it affects their ability to make important financial decisions, such as building savings or making larger purchases.
• Yet only 17% feel they understand and know a lot about how debt consolidation works, despite its ability to simplify repayments and reduce interest costs.

Why consolidation matters

Experian’s Financial Inclusion Whitepaper highlights the impact that debt consolidation can have:

• People could save an average of £1,257 per year in interest.
• Broader industry adoption could unlock £15.1bn for the UK economy and boost household savings by £2.1 billion annually.

Debt consolidation can also help with the challenges many people face when managing multiple debts. The research revealed the key issues include:

• juggling cash flow
• tracking multiple payment dates
• the risk of missed payments
• managing numerous accounts and logins

Importantly, when people don’t know what options exist, they often turn to riskier ones.  
Research in 2023 found 3 million people had used an unlicensed lender or loan shark, and more than 10 million borrowed from friends or family. 

Collective action for long‑term impact

Sustainable progress will only be possible through collective effort.  
  
This is why Experian is calling on the industry to champion the use of these solutions, review current processes, deepen public understanding, and ensure that people have access to the resources they need to take charge of their financial wellbeing.

Innovation in action: Experian ReFi

Innovations such as Experian’s ReFi are already showing what is possible. Using direct settlement technology, ReFi:

• pays off existing debts directly with creditors
• prevents “double counting” of existing borrowing by ensuring lenders assess only the new loan being taken out

Over the past year, ReFi has: 

• helped settle more than £70 million of consumer debt
• contributed to a 68% uplift in successful consolidation applications for some lenders 

Recent activity on Experian’s Marketplace also shows one in three loan searches is now for debt consolidation, while demand in balance transfer cards has risen 8.5% in the past year.

Looking ahead

Credit Awareness Week is a reminder that improving financial confidence is a shared responsibility.  
  
By expanding awareness, simplifying solutions, and making responsible credit more accessible, the industry can help ensure people have the tools they need to manage debt with confidence.