New proposals outlined by the government to promote financial inclusion could help those with debt management problems, one charity has claimed.

According to Citizens Advice, placing a greater emphasis on financial inclusion will benefit those Britons struggling with debt management.

Teresa Perchard, director of policy at the financial advice organisation, said the new plans will "reduce debt and help people manage money effectively".

Financial exclusion can have a "huge impact", she explained. "It can mean being in serious debt and not knowing how to get out, or not having a bank account, or not knowing how best to prevent financial problems."

Earlier this week Ed Balls, economic secretary to the Treasury, stated that the government is to invest some £120 million in the financial inclusion project.

Part of the scheme will be to provide advice on debt management and to protect consumers from illegal credit lenders.

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