Reasons for debt

At PayPlan we understand that debt is a big part of many people’s lives, which is why we will help without ever judging anyone who contacts us. Unmanageable debts can occur for many different reasons...
The level of consumer debt in Britain has reached a staggering £1.424 trillion (as of April 2013*).

There has always been a stigma attached to those who are in debt, with the feeling that the debtors have knowingly overspent and lived beyond their means. This is true in very few cases and debts can be caused by circumstances that are out of the individual's control, which could include:

*Source: http://themoneycharity.org.uk/

Redundancy or loss of income and debt

A loss of income through redundancy, however temporary, can dramatically affect people financially as well as emotionally.

Illness and debt

Illness and stress doesn’t just affect people physically and emotionally, it can also affect them financially… Many illnesses prevent people…

Divorce or relationship breakdown

Relationship breakdowns are often closely associated with financial problems, and indeed statistics show that debts can often arise or increase

Business Failure As A Reason For Debt

Many businesses, small or large, require credit to start trading as the initial costs and overheads can be considerable.Once established,…

Debt From Irresponsible Lending

While many people take responsibility for their own debts, the ease of getting credit in the first place has undoubtedly…

Debt From Poor Financial Management

Poor financial management happens when credit facilities are used to pay for items that an individual cannot afford out of…

How Status Anxiety Can Lead To Debt

Today’s society puts an enormous amount of pressure on people to fit certain expectations and, as a result, ‘status anxiety’…