Christmas Repossession Debt Reality for British Debtors

British Debtors Face A Cheerless Christmas As Repossession Becomes A Reality

John Fairhurst, Managing Director of Payplan, the free debt solutions provider, gives reaction to the Government’s Repossession Guidelines.

Payplan Welcomes Repossession Guidelines

“We welcome today’s implementation of the Government’s guidelines to help those facing repossession, which is a growing and very real problem in Britain today.

Rise In Charging Orders & Orders of Sale

“Payplan regularly sees people making the mistake of prioritising credit card debt repayments above more important debts, such as their mortgage. They have a mistaken belief that repossession simply won’t happen in their case, and that their home will remain safe. Recent rises of 48% in the number of repossessions in the first half of this year show how urgent this problem has now become. Alongside this, increasing numbers of unsecured lenders are now also applying for ‘Charging Orders’ which allow them to seek ‘Orders for Sale’ if repayment arrangements are not maintained.

£42,000 Average Unsecured Debt

“Those coming to Payplan for help with mortgage arrears owe on average £42,000 to unsecured creditors in addition to their mortgage debt. Often mortgage lenders are unaware of this additional debt, without understanding the full problem they are unable to offer a sustainable solution. Hopefully, these new guidelines will improve communication between borrowers and lenders, and allow for better understanding from both sides.

Christmas Debt Stress

“In our experience many people worry that their home will be at greater risk if they admit the full extent of their problems. This is simply not the case, we find that it is almost always possible to both save the home and reduce debt repayments to an affordable rate. We urge over-indebted Britons to get help now rather than face a Christmas of stress and worry about debt.”

Mortgage Arrears Help and Repossession Advice

Consumers having difficulty paying their mortgage should call the Payplan Mortgage Arrears Hotline on 0800 917 7819 or they can submit their mortgage arrears details online.

Filed Under  Debt News, Payplan Press Releases  |  Leave a Comment

Debt In 2009 & Latest Insolvency Figures

Calm Before The Storm: Payplan Expects A Large Rise In Bankruptcies And Numbers Seeking Debt Help Next Year

John Fairhurst, Managing Director of Payplan, the free debt solutions service, comments on this Friday’s quarterly Insolvency Service statistics:

Payplan clients are ‘£650 short’ of their financial commitments

“Today’s figures from the Insolvency Service only show part of the problem. What we are seeing is a dramatic short fall between what people should pay towards their debts and what they can afford to pay. On average, Payplan customers are £650 short every month in meeting their financial commitments. Although these people are not bankrupt they are technically insolvent when they call for help and have been for some time. People are waiting far too long to address their debt problems and advice agencies are still only seeing the tip of an iceberg.

Credit used to fund ‘food and fuel bills’

“The high levels of unsecured debt that we see are not necessarily accrued through lavish lifestyles. Many people are regularly overspending on day to day living costs, building up debt through putting their food and fuel bills onto credit cards. The recent lack of available credit has left these people facing a personal financial crisis, which Payplan believes will create a large increase in people seeking debt help next quarter, and a significant jump in those facing bankruptcy over the next year.

Confronting debt in 2009

“The average person coming to Payplan for help owes over £30,000 in unsecured loans. The earlier that financial help is sought, the more likely it will be that the more serious consequences of debt can be avoided. We expect debt issues to come to the fore next year, as more indebted Britons living on credit are confronted with their financial problems.”

Debt help from Payplan

Freephone 0800 280 2816 six days a week to speak with an experienced debt adviser. Lines are open 8am to 9pm Monday to Friday and 9am to 3pm on Saturdays. Or submit your details online using Payplan’s Debt Calculator.

Filed Under  Debt News, Payplan Press Releases  |  1 Comment