Debts Hit Middle Classes

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Debt Crisis Hits Middle Classes

Free debt solutions service, Payplan, has responded to this weekend’s national press coverage focusing on the increase in enquiries for debt advice from the middle classes.

Debt advisers at the service have been speaking to many families and individuals with high incomes, but whose debt has reached breaking point.

Debt Affordability Decreases

Payplan’s managing director, John Fairhurst, said:

“Our clients are really feeling the pain of the rising costs. Householders’ budgets are being squeezed as the cost of food, fuel and energy bills reaches ever higher levels. A direct result of this is that the affordability of their debt burden is at an all time low.”

Free Debt Advice

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. Alternatively get debt advice online

Debt Figures Could Be Eye Of The Storm

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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.

MORTGAGE CONCERNS FUEL CALLS TO DEBT HELPLINE

Filed Under  Financial News, Mortgage Advice, Payplan Press Release, Personal Finance, Press Releases, UK Debt News  |  Leave a Comment

Worried Homeowners Call Debt Helpline

Turbulence in the mortgage market has prompted an increase in calls to Payplan’s debt advice helpline. Debt counsellors are speaking to people whose mortgage payments have gone up and can no longer cope with this bill, in addition to their other monthly commitments.

A survey of new callers to Payplan’s debt helpline, a free debt solutions service, showed that more than 50 per cent of people had noticed an increase in their mortgage payment. Of these people, 35 per cent admitted that concerns about their mortgage had prompted their call to Payplan’s debt helpline.

John Fairhurst, managing director, said:

“We are speaking to a lot of people who are deeply worried about their ability to stay afloat and keep up with all their outgoings. The current turbulence in the mortgage market means it is a worrying enough time for prime customers - so for those people with bad credit histories, it is even more troubling.”

Payplan’s Special Repossession Advice Team (0800 917 7819)

Payplan’s Special Repossession Advice Team (0800 917 7819) gives advice to people who are facing repossession orders. This team includes mortgage advisers, who are on hand to give expert support to people in distress.

Mr Fairhurst went on:

“Our team speaks daily to people with mortgage arrears and many of these individuals and families are scared that they will lose their homes. Our team is able to ease the worries of callers and advise them of their rights. We will do everything in our power to ensure they keep their home.”

Last month, statistics from the people Payplan helped, showed that mortgage payments accounted for an average of 40 per cent of net income. 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.

Rising mortgage costs means that the money left over at the end of the month to pay unsecured debt is reducing. It is important that people look at their secured and unsecured borrowings together and Payplan is the only debt solutions service that can do this in house.

Payplan’s Special Advice Team is also helping people in debt management plans who are coming to the end of two-year fixed rate mortgage deals. Mortgage advisers from the team can access the whole of the market, and are working hard to find the best deal so that debtors can continue to keep up repayments to creditors.

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

Freephone 0800 917 7819 six days a week to speak with an experienced debt adviser from our Special Advice Team. Lines are open 8am to 9pm Monday to Friday and 9am to 3pm on Saturdays. Or visit the Payplan website to submit your house repossession problem online.

INTEREST RATE CUT WON’T EASE PAIN OF DEBT

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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.

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