Debt Help Sought By Over Sixteen Thousand In January

Written by Payplan Press Release - Grantham on Friday 5 February 2010

Calls to debt helpline indicate recession is far from over

Following today’s publication of the insolvency figures for quarter four of 2009, Payplan, the free debt solutions service, has revealed that calls to its debt helpline totalled over sixteen thousand in January alone.

John Fairhurst, managing director at Payplan, said:

“Although official figures tell us that the UK is emerging from recession, we know from the experiences of those people we help that the effects of the economic downturn are still being felt by vast numbers of Britons.

“We were contacted by more than sixteen thousand people in January this year, who are seriously concerned by their debts. Worryingly, there will be many more individuals who have not yet sought help - the longer the debt is ignored the worse the problem will become.”

Today’s figures from The Insolvency Service reveal that more than 35,574 people were declared insolvent in the last quarter of 2009, an increase of 24.9% on the same period last year.

Of those individuals made insolvent over the three months to December, 17,007 people were declared bankrupt and 13,219 entered into an individual voluntary arrangement (IVA) with their creditors, while the remaining 5,348 signed up to the Government’s new Debt Relief Orders.

Notes to Editors

For further information please contact:

Payplan Press Office
Jayne Newton
jayne.newton@payplan.com
01476 541980 or 07812 736861

Debt Relief Orders

A Debt Relief Order is a cheaper form of bankruptcy for people on low incomes. Introduced in April 2009, they allow those with debts of less than £15,000 and assets of less than £300 to declare themselves bankrupt for a fee of £90, rather than the usual £510.

About Payplan

Payplan is a free debt advice and solutions service that provides impartial advice to people in financial distress. Payplan helps over 100,000 people every year and works closely with organisations in the field of money advice and consumer and employee welfare.

Payplan’s freephone debt helpline is open six days a week, call 0800 280 2816 to speak with an experienced debt adviser. Lines are open 8am to 9pm Monday to Friday and 9am to 3pm on Saturdays. Alternatively visit www.payplan.com.

Filed Under  Debt News, Financial News, Payplan Press Releases, debt help  |  Trackback

Leave a Reply