INTEREST RATE CUT WON’T EASE PAIN OF DEBT

Writing by Payplan Media Release - Grantham on Thursday 10 April 2008

Callers To Free Debt Helpline Use Credit Cards To Pay For Basic Needs

Today’s interest rate cut will do little to ease the pressure on people in debt, according to leading free debt solutions service, Payplan. Callers to Payplan’s free debt helpline are growing increasingly concerned at the rising cost of living and the impact this is having upon their ability to pay back what they owe to creditors.

Managing director at Payplan, John Fairhurst, said:

“The cut in interest rates, whilst welcome, won’t have any immediate impact upon the cost of living for most people in debt.”

In the nine months since the credit crunch began, callers to the free debt helpline have seen a nine per cent increase in their monthly spend on utilities.

Mr Fairhurst went on:

“While monthly bills have been going up, the money that people have available to repay their creditors has decreased by 14 per cent. This is placing families under huge pressure to meet their monthly commitments.”

A survey of new callers to Payplan’s debt helpline found that a third of people have paid priority bills, such as mortgage payments or utilities, using a credit card.

Mr Fairhurst urged:

“People who are struggling to see a way out of their financial situation should seek good advice from a free organisation. If you are paying for the roof over your head with a credit card, alarm bells should be ringing, and help is quickly needed before debt problems get any further out of control.”

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, Payplan Press Release, Personal Finance, Press Releases, UK Debt News  |  Trackback

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