Christmas Repossession Debt Reality for British Debtors

Writing by Payplan Press Release - Grantham on Wednesday 19 November 2008

British Debtors Face A Cheerless Christmas As Repossession Becomes A Reality

John Fairhurst, Managing Director of Payplan, the free debt solutions provider, gives reaction to the Government’s Repossession Guidelines.

Payplan Welcomes Repossession Guidelines

“We welcome today’s implementation of the Government’s guidelines to help those facing repossession, which is a growing and very real problem in Britain today.

Rise In Charging Orders & Orders of Sale

“Payplan regularly sees people making the mistake of prioritising credit card debt repayments above more important debts, such as their mortgage. They have a mistaken belief that repossession simply won’t happen in their case, and that their home will remain safe. Recent rises of 48% in the number of repossessions in the first half of this year show how urgent this problem has now become. Alongside this, increasing numbers of unsecured lenders are now also applying for ‘Charging Orders’ which allow them to seek ‘Orders for Sale’ if repayment arrangements are not maintained.

£42,000 Average Unsecured Debt

“Those coming to Payplan for help with mortgage arrears owe on average £42,000 to unsecured creditors in addition to their mortgage debt. Often mortgage lenders are unaware of this additional debt, without understanding the full problem they are unable to offer a sustainable solution. Hopefully, these new guidelines will improve communication between borrowers and lenders, and allow for better understanding from both sides.

Christmas Debt Stress

“In our experience many people worry that their home will be at greater risk if they admit the full extent of their problems. This is simply not the case, we find that it is almost always possible to both save the home and reduce debt repayments to an affordable rate. We urge over-indebted Britons to get help now rather than face a Christmas of stress and worry about debt.”

Mortgage Arrears Help and Repossession Advice

Consumers having difficulty paying their mortgage should call the Payplan Mortgage Arrears Hotline on 0800 917 7819 or they can submit their mortgage arrears details online.

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

Debt In 2009 & Latest Insolvency Figures

Writing by Payplan Media Release - Grantham on Friday 7 November 2008

Calm Before The Storm: Payplan Expects A Large Rise In Bankruptcies And Numbers Seeking Debt Help Next Year

John Fairhurst, Managing Director of Payplan, the free debt solutions service, comments on this Friday’s quarterly Insolvency Service statistics:

Payplan clients are ‘£650 short’ of their financial commitments

“Today’s figures from the Insolvency Service only show part of the problem. What we are seeing is a dramatic short fall between what people should pay towards their debts and what they can afford to pay. On average, Payplan customers are £650 short every month in meeting their financial commitments. Although these people are not bankrupt they are technically insolvent when they call for help and have been for some time. People are waiting far too long to address their debt problems and advice agencies are still only seeing the tip of an iceberg.

Credit used to fund ‘food and fuel bills’

“The high levels of unsecured debt that we see are not necessarily accrued through lavish lifestyles. Many people are regularly overspending on day to day living costs, building up debt through putting their food and fuel bills onto credit cards. The recent lack of available credit has left these people facing a personal financial crisis, which Payplan believes will create a large increase in people seeking debt help next quarter, and a significant jump in those facing bankruptcy over the next year.

Confronting debt in 2009

“The average person coming to Payplan for help owes over £30,000 in unsecured loans. The earlier that financial help is sought, the more likely it will be that the more serious consequences of debt can be avoided. We expect debt issues to come to the fore next year, as more indebted Britons living on credit are confronted with their financial problems.”

Debt help from Payplan

Freephone 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 submit your details online using Payplan’s Debt Calculator.

Filed Under  Grantham, Payplan Media Release, Payplan Press Release, Press Releases, UK Debt News  |  1 Comment

Food Price Rises Slowing - Good News Tempered by Recession?

Writing by Paul on Friday 17 October 2008

BBC Survey Provides Bittersweet Relief for Household Budgets

Food Price Rises Slowing - Good News Tempered by Recession?

According to a survey commissioned by the BBC, there is evidence that food price rises are slowing, which may come as some relief to consumers, who, for most of 2008, have experienced above inflationary rises in food prices.

Further news that the price of oil has fallen dramatically in the last week will also be met with relief as some petrol retailers cut prices on their forecourts to below £1 per litre.

Unemployment Fears

The news is bittersweet however, when one considers that those people who’ve been left struggling to cope with the monetary pressures of their household budgets now have to face a widely predicted and imminent global recession. One major concern for any economy during a recession is the inevitable increase in unemployment figures.

Any reduction in the cost of living will be helpful for many people, but without regular employment, there can seemingly be no way forward for those who can’t pay their household living costs and debts.

Payplan Offers Free Debt Advice

Payplan offers free debt advice to anybody who has a debt problem and needs help organising their household budget, and finding free debt advice easily at a time when it’s most needed can be essential to preventing further and more serious financial problems. Payplan’s experience could prove invaluable.

To find the most suitable budgeting and debt advice for your personal financial circumstances, call 0800 917 7823 or contact Payplan online.

Filed Under  UK Debt News  |  Leave a Comment

The Over Fifties, Debt and Retirement

Writing by Payplan Media Release - Grantham on Friday 3 October 2008

Over Fifties May Have To Delay Retirement To Clear Debts

New research from Payplan, the UK’s leading provider of free debt solutions, reveals the growing problems that indebted ‘pre-retirees’ (aged 50-60) face as their average unsecured debts soar to £41,400. This is 25% higher than the average unsecured debts of other age groups (£32,700) and paints a gloomy picture for many older consumers as they approach retirement. This research has been carried out with over 40,000 Payplan consumers.

‘Significantly More Debt’

Not only are ‘pre-retirees’ in significantly more debt than other age groups but it also takes them longer to pay back this debt: their average repayment term in a debt management plan is 11 years, compared with 9 years for other groups. This gap has increased by 27%, suggesting that debt for ‘pre-retirees’ is a growing problem and potentially one that will increase as the recent economic turmoil forces up the prices of groceries, utilities and unsecured borrowing.

Other Key Research Findings

  • 14% of Payplan customers that registered between July 2007 and June 2008 were aged 50-60.
  • ‘Pre-retirees’ spend 15% of their total expenditure on utility costs, compared with 13% across all other age groups.
  • The average surplus income* of an indebted 50-60 year old is £307.38, compared with £290.21 across all ages.

Pre-Retirement Debt…Hugely Concerning

Such high levels of ‘pre-retirement’ debt are hugely concerning. Not only are the salaries for this group likely to fall rather than increase over the repayment term but at this age any ’surplus’ income should be saved to cover their retirement - which could last over thirty years.

Managing Director of Payplan, John Fairhurst, comments:

“Most people imagine that as they reach the countdown to finishing work, they will have paid off their mortgage and be busily saving for a comfortable retirement. These figures show that this is simply not the case for many ‘pre-retirees’ and highlights a hugely concerning trend towards indebtedness in later life.

“Indeed, with this group taking an average of eleven years to clear their debts on their existing income, many of our clients will have no option but to delay retirement until they clear outstanding balances and have had the chance to build some type of nest egg.

“Although many people in their fifties are used to maintaining high levels of personal debt they are often just ‘treading water’ with repayments and covering little more than interest charges. If they are to enjoy a reasonable standard of living in later life then it is vital that they have a clear plan in place for becoming debt free whilst they are still working.”

*Surplus: The amount of money left over at the end of the month once all priority debts, such as mortgage/rent and utility bills, have been paid.

About Payplan

Free, confidential advice is available from Payplan (either online or by calling 0800 917 7823), or your local Citizens Advice Bureau, who can help work out a debt repayment plan, as well as exploring what other options are available.

Notes to Editors

Payplan Case Studies

All our case studies are available for interview. For further information please contact Payplan’s Press Office:

Jayne Newton - Payplan
Email: jayne.newton@payplan.com
Tel: 01476 541980, 07812 736861

  • Payplan is helping a 50-year-old postal worker who has £58,954 of unsecured debt. He took loans to fund his daughter’s wedding and spent a lot of money treating his grand-children. He has a mortgage on his house, as well as a secured loan. He is in a debt management plan and is paying £181.32 per month.
  • Payplan is helping a 55-year-old divorcee in £52,277 of debt. She is a full-time, live-in carer and has a mortgaged property which she rents out. Her debts were caused by her business failing. She used credit cards and loans to buy stock and machines. She is in a debt management plan and is paying £319.95 per month.
  • Payplan is helping a 58-year-old man who is retired and lives with his wife in a rented house. The couple have £26,000 of unsecured debt. He was involved in a near-fatal lorry accident which left him with health problems that meant he had to give up work. He is in a debt management plan and pays £126.51 per month.

Related Payplan Debt News

Older People In Debt

Filed Under  Consumer News, Financial News, Payplan Media Release, Payplan Press Release, Press Releases, UK Debt News  |  Leave a Comment

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