Mortgage Is Top Concern For Callers To Debt Helpline

Writing by Payplan Media Release - Grantham on Friday 9 May 2008

Mortgage Possession Figures - 17% Rise In First Quarter 2008

27,530 mortgage possession orders made - 17% higher than the first quarter in 2007

Today’s jump in the number of mortgage possession orders issued since the beginning of the year has come as little surprise to debt solutions service, Payplan, which has been receiving record numbers of calls from people concerned they might lose their homes.

A survey of new callers to Payplan’s helpline showed that over half had seen an increase in their mortgage payment. Of these people, 35 per cent say that concerns about their mortgage had prompted their call for help.

Payplan’s managing director, John Fairhurst, said:

“Today’s figures reflect what we already know from talking to our clients. Many simply don’t have enough cash to cover their outgoings.

Of particular concern are people with poor credit histories who are coming to the end of fixed rate deals. With no access to a new deal they have no alternative but to pay their existing lender’s standard rate which often adds hundreds of pounds a month to already overstretched budgets. Not surprisingly this can, and often does, lead to financial meltdown. Unless lenders can offer this group of borrowers some sort of financial cushion we can only see possession figures rising further.”

Notes to editors

The figures showing the latest national statistics on mortgage and landlord possessions, are released by the Ministry of Justice on a quarterly basis. The quarterly releases presents statistics on possession actions issued in county courts by mortgage lenders and social and private landlords in England and Wales. The figures represent court actions for possession and not actual homes repossessed.

About Payplan - Payplan provides free, ethical and immediate debt help to over 100,000 people every year, working closely with organisations in the field of money advice and consumer and employee welfare.

Call Payplan free on 0800 917 7819 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 the Payplan Debt Calculator.

Filed Under  UK Debt News  |  Leave a Comment

Debt Figures Could Be Eye Of The Storm

Writing by Payplan Media Release - Grantham on Friday 2 May 2008

Insolvency Figures Mask True Extent Of Debt Struggle

Payplan, the free debt solutions service, has responded to today’s figures on the number of people that became insolvent during the first quarter of 2008 with advice for people in debt. The figures released by The Insolvency Service this morning, show that 15,651 people went bankrupt, with a further 9,614 taking out individual voluntary arrangements (IVAs) during the first three months of this year.

These figures are in line with ones reported for the previous quarter, but are considerably lower than for the same period of 2007, with IVA numbers dropping by around 22%.

John Fairhurst, Managing Director of Payplan, said:

“Although there has not been a big increase in the number of people going bankrupt, our clients are far worse off than they were this time last year.”

Debt advisers at the service have seen a significant change in the affordability of clients’ debt. Expenditure has increased faster than income resulting in an average drop of 14 per cent in the money available to service debts.

Mr Fairhurst went on:

“The latest figures show that people are managing to soldier on for a bit longer, but it seems that it will be only a matter of time before we see a big jump in these numbers. The rising costs of essentials such as; food, petrol, gas and electricity, is putting increasing pressure on those who were already struggling to make ends meet.”

Currently, only five per cent of the people who contact Payplan for help go down an insolvency route.
There are places where people can get free debt help and support – Citizens Advice Bureau and Payplan are both free services giving impartial advice and support to people in financial difficulty.

Mr Fairhurst added:

“To people struggling we would say – don’t continue to battle this alone, get the help and support you need.”

Information for Editors

Payplan provides free, ethical and immediate debt help to over 100,000 people every year, working closely with organisations in the field of money advice and consumer and employee welfare.

Press office contact - For more information please contact the Payplan press office on 01476 541980, 07812 736861, or email Jayne Newton.

Contact Payplan

Call Payplan free on 0800 917 7823 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 visit the Payplan website to submit your debt problem online.

Filed Under  Financial News, Grantham, IVA News, Payplan Press Release, Press Releases, UK Debt News  |  Leave a Comment

Do Local Election Results Reflect Rise In Cost Of Living?

Writing by Paul on Friday 2 May 2008

Calls For Government To Help With Cost Of Living

With the Government facing potential embarrassment over today’s local election results in England and Wales, awkward questions will now be asked about how the damaging effect of the rise in the cost of living to peoples’ budgets can be lessened.

Rise In Cost Of Fuel

With perpetually increasing fuel prices at the pump, electricity, gas and oil prices in the home, and a rise in food prices across the board, many struggling families will be looking for new ways to save money. Being thrifty and making the most of what they already have could be the answer to many families’ personal ‘credit crunch’.

Ditch or Sew?

One way in which people appear to be trying to reduce their cost of living has been a possible cut in the purchase of new clothing and trends towards thrifty behaviour are manifesting themselves in a recent rise in the sale of sewing machines. Both Argos and Woolworths High Street stores have recorded significant rises in their sales during the last couple of years by as much as 50%, according to the Telegraph (21st April). For those with sewing skills, the use of a sewing machine is certainly an excellent way of making savings on living costs.

For those who are unable to sew, or who are simply out of practice, there is plenty of sewing advice available online.

Costs of Living

Payplan agree that there is plenty of money to be saved by repairing clothes that are past their best, to help save on the cost of living. Clothing costs account for an important and substantial part of a person’s yearly expenditure, about £240 per person per year, however, with recent rises in the cost of living (the average cost to fuel a typical family home, for example, has risen by an estimated £100 per year, almost half of a typical person’s clothing budget), there is less money available from peoples’ already stretched budgets to spend on essential clothing items.

Payplan Free Budgeting advice

If you need budgeting advice, then please call Payplan for free on 0800 917 7823. Payplan provide free debt management plans which can help bring debt under control, allowing successful budgeting for essential and priority costs. You can submit your details online for free debt advice using Payplan’s Debt Calculator.

Filed Under  Consumer News, Financial News, Money Saving Tips, Personal Finance, UK Debt News  |  Leave a Comment

Problems Opening A New Basic Bank Account?

Writing by Diane on Thursday 1 May 2008

Debt Question Of The Week

I have been trying to open a new cash card account at the bank but they keep telling me I can’t have a basic bank account and that I must apply for a current one. Do I have to ?

1) If you are trying to resolve your debt situation and want a neutral account, then a basic, instant access cash card account is the best option.

2) Whichever neutral bank you approach, you should remember that you are the customer and the bank should be seeking to open the basic account that you are asking for.

3) It isn’t clear whether bank staff have incentives for persuading clients to open current accounts, but you should maintain that it is only a basic cash card that you need, as a current account would involve a credit check.

4) You do not need the overdraft facility or cheque book that comes with a current account either. Everyone has the right to have a basic card account.

5) Find out more about Basic Bank Accounts here.

For further debt advice, call Payplan on 0800 917 7823 or submit an enquiry online.

Filed Under  UK Debt News  |  Leave a Comment

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