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  |  Trackback

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