If you drive a car to work, then you’ll probably have read Payplan’s recent article about saving money on fuel costs. It now appears that the increased rise in the cost of fuel is something that’s here to stay - a major issue for many commuters and businesses across the UK who are no doubt looking for alternative methods of travelling to beat this cost.

Innovative lift-sharing near you

One real alternative that can help you get to work more cheaply is through a good old fashioned lift-share and there are several websites that can help you find lift-sharing near you for free. One of these is Liftshare.org, part of the Liftshare Network, which has recently been recognised at The Queen’s Awards for Enterprise 2008 for outstanding achievements in Innovation.

Register online for lift-sharing

Liftshare.org is free to register, simple to use, and allows you to specify various options to make sure you find lift-sharing near your area.

During the registration process you state your beginning and end destinations by postcode or town, your journey’s ideal start and return times and build in a degree of flexibility each way, together with any additional information that will assist others when deciding to lift-share with you (such as whether you don’t mind smokers).

Find lift-sharing near you safely and securely

Once you’ve registered your journey, Liftshare.org will automatically find lift-sharing near you and list the basic details of each suitable match with your requirements as well as show a visual map representation of your journey on-screen. All you have to do is select the lift-share near you that you think is most suitable and ‘Send a Request to Share’. This will inform the relevant person that you make a similar journey, and that you would like to save money on fuel by lift-sharing too. Importantly, your full details are never displayed to other people searching for a lift-share - in fact, security and safety is a big concern for all travellers and liftshare.org has recognised this by offering lift-sharing safety tips on its website.

Lift-sharing for businesses

The Liftshare Network was founded as a social enterprise in 1997, and as well as providing an invaluable service for people who want to find lift-sharing options locally, Liftshare.org also offers information about further services and support for businesses wishing to implement a lift-sharing scheme for their employees. The Liftshare Network also encourages cycling, walking and efficient taxi and public transport use through a variety of schemes.

Free budgeting and debt advice

If you find that you’re debts are drinking your fuel budget or you’re finding it increasingly difficult to get to work because of the rising cost of petrol, then call Payplan free on 0800 917 7823 for free debt and budgeting advice. You can also submit your details to Payplan using their online Debt Calculator.

A report commissioned by Help the Aged has indicated that some older people in debt are struggling to meet their financial commitments in the same way as their younger, debt stricken counterparts during these tumultuous financial times.

Four times higher than 10 years ago

And although the levels of unsecured debt per person gradually decreases with age, it states that for those between 60 and 65, there has been an increase in debt following retirement. Indeed, for older people in debt in their late 50s or early 60s, the level of unsecured debt in 2005 was four times higher than for the same age group in 1995, ten years earlier.

Working past retirement

The report also suggests that older people in debt (mainly taking out unsecured credit) following retirement are more likely to continue working to help meet their financial commitments. Whilst the report suggests that anti-poverty measures put in place by the UK Government, such as the Pension Credit, have helped to reduce financial stress for older people in debt, it still recognises that there is no room for complacency. For those older people in debt who need to continue to work after their retirement to help pay the ever increasing cost of household fuel bills, food shopping and petrol, there are still financial insecurities that cause concern.

Budgeting and free debt advice for everyone

Payplan can offer free budgeting and free debt advice for anybody struggling with their finances and debt commitments. You can call Payplan free on 0800 917 7823 or submit details of your circumstances online using the online debt enquiry form. All contact with Payplan is kept strictly confidential.

Subscribe to Payplan Debt News & Blog by Email

With oil prices soaring above $130 a barrel and the price of petrol rising at an increasingly astronomical rate, it may seem like there is little respite for motorists with the government’s proposed fuel duty increase of 2p per litre still on the cards - many motorists are struggling to put fuel in their vehicles already, as well as pay their priority bills and unsecured debts - however, there are several ways to save money on fuel costs.

Get the Cheapest Fuel at the Pump

The first of the many ways to save money on fuel costs is the most obvious, and that is to ensure that you’re buying the cheapest fuel (petrol or diesel) from the filling-station in the first place - visit www.petrolprices.com to find the cheapest petrol where you live.

Driving Savings on Fuel

Secondly, your driving technique and general attitude to driving can have a significant bearing on the cost of your monthly fuel bill. Here are 10 ways to save money on fuel costs (the Energy Saving Trust suggest as much as £120 per year can be saved on the cost of fuel), helping you beat the fuel price increases whilst at the same time doing your bit to save the environment:

10 Ways to Save Money on Fuel Costs

1. Watch the Revs

Keep a watchful eye on your rev counter - change up a gear before you reach 2,500rpm for petrol powered cars and before 2,000rpm for diesel powered vehicles.

2. Quick, Slow, Quick Quick, Slow

Avoiding sudden bursts of acceleration and irratic heavy braking is not only one of the ways to save money on fuel costs, but it also reduces the likelihood of having a serious road traffic accident. The rule is to always look ahead and anticipate the road conditions, allowing you to drive smoothly, accelerate gradually and use the engine to slow down where appropriate.

3. How Cool Are You?

Especially during the summer months, it’s tempting to stay cool in your car by reaching for a switch and turning on the air conditioning. However, air conditioning uses a significant amount of fuel. Ask yourself, do I really need to turn the air conditioning unit on? Surely it’s more ‘cool’ to save money on fuel?

4. Go Slow!

Driving at the most efficient speeds can make an enormous difference to the amount of fuel that your vehicle will consume and it’s one of the easiest ways to save money on fuel costs. Depending on the make and model of car that you own, speeds between 45 - 55 mph are generally considered to be the most efficient for your vehicle’s fuel consumption. Of course, this shouldn’t mean that you drive more slowly when it’s not appropriate or safe (eg on motorways). Driving at speeds faster than 55 mph will increase you cars fuel consumption significantly.

5. Get Your Coat

Never turn the engine on and leave the car running to warm the car’s interior whilst you go back indoors to enjoy a cup of tea. Leaving your car to ‘idle’ in this way not only wastes valuable fuel, but also causes rapid wear and tear to your vehicle’s engine. Wear more clothes - drink less tea!

6. Rocket Science

Assuming that you understand the basic physics behind the design and shape of a space rocket, then you’ll understand that causing unnecessary drag on a moving object will require a greater force for it to move in a particular direction, and consequently, more fuel - this is the reason why we don’t see space rockets fitted with bike-racks, roof-racks or roof-boxes. Therefore, if you’re not using such accessories, remove them from your vehicle to reduce weight and drag, increase fuel efficiency and save you money.

7. Get Some Exercise!

When your car’s engine is cold, it burns up to twice the amount of fuel as a warm engine does. Consequently, if you take the easy option for short journeys by jumping straight into your car, rather than walking, cycling or using public transport, you will not only damage your bank account further by using unnecessary fuel, but you will miss a simple opportunity to contribute to reducing your carbon footprint on the environment, as well as getting a little exercise!

8. Use the Local Media

Always plan your journeys before setting off. Check your local newspapers, local radio stations or use the Internet to find out about any serious congestion, road works or road traffic accidents. At the risk of stating the obvious, carrying a map with you in your car at all times will prevent you from the extra miles that are covered in the unlikely event that you should get lost - and, if you’re lucky enough to have one, don’t rely completely on your satellite navigation system to get you to where you want to be via the most appropriate route either.

9. Inflation

Reduced tyre pressure can cause your fuel consumption to increase by as much as an estimated 5%. Again, this is one of the simplest ways to save money on fuel costs - check your tyres weekly and keep them inflated to the manufacturer’s specifications.

10. Still Not Moving?

At traffic jams, road-works and any occasion when you and your vehicle are stationary for longer than 2-3 minutes, save fuel by simply turning the engine off at the ignition.

Free Budgeting and Debt Advice

If you’re struggling with the recent petrol price increases and you’re unable to pay your monthly bills as a result, Payplan can offer free debt advice by phone on 0800 917 7823 or online using their quick contact form for immediate money advice

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

Following complaints from debt charity Credit Action, Facebook are investigating the legality of payday loans advertising placed on its website. Several payday loan and logbook loan companies are being investigated by Facebook, according to Credit Today.

Payplan recently had concerns about payday loans and logbook loans, and it appears that some companies are willing to ignore loan marketing legislation by omitting important information such as the APR percentage rate of their payday loans.

In an interview with BBC’s Radio 2, Payplan’s John Fairhurst said about payday loans that “Often the sums are quite small, just a few hundred pounds, but the interest rates charged are enormous. A thousand per cent APR is not uncommon.”

Young Facebook Users In Debt

Omitting this sort of information could mean that people who are desperate to pay their monthly bills use payday loans or logbook loans as an olive branch, unaware of the full terms and conditions relating to the cost of paying back the money. Young people especially, many of whom use Facebook as a form of social networking, may take up offers of payday loans and logbook loans and be susceptible to high levels of interest repayments of which they may not have been aware when the loan was first taken out.

Free Debt Advice from Payplan

Payplan advise 100,000 clients each year who have debt problems. If you feel that there is no solution to you debt problem, no matter how big or small, Payplan will be able to assess your finances and offer budgeting and money advice and present you with free debt solution options to help solve your debt problem.

Call Payplan free on 0800 917 7823 or submit you debt situation online using Payplan’s Debt Calculator

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.

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.

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.

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.

The recent test case decision allowing the Office of Fair Trading (OFT) to rule on the fairness of banks’ unauthorised overdraft charges could mean that many people struggling with debt are refunded money.

Customers have been reclaiming charges since the beginning of 2006, and the BBC estimates that in 2007, despite the fact that banks claim their overdraft charges are not unfair, approximately 378,000 claimants were refunded around £784 million.

Payplan Free Debt Advice

Payplan advise that those who are struggling to prioritise their living costs and meet monthly payments to credit cards and personal loans should use any overdraft charge money refunds or lump sum payments as an opportunity to reduce their debt. Priority costs include missed mortgage repayments, late payments towards the council tax bill and ensuring fuel bills such as gas, electricity and oil are up to date.

Using Payplan’s free debt advice service, and making the most of a financial opportunity like an overdraft charge money refund, could be the first step to dealing successfully with a larger debt problem. Payplan can help people manage their debt using a free debt management plan (DMP), and money refunds from the banks can go some way to solving a person’s debt problems.

To find out how, call Payplan free on 0800 917 7823 or submit your details online for immediate free debt advice.

The IVA Council (IVAC), who in October last year was forced to remove logos similar to the official Insolvency Service logos from its website, still appear to be actively sending letters to people in IVA arrangements, as recent comments on Payplan’s previous article ‘IVA Council’ makes false claims suggest.

Insolvency Service Statement

The Insolvency Service has recently stated the following on their website:

“The Insolvency Service would like to make it clear that we are in no way associated with an organisation called the IVA Council.

IVAs are a flexible and effective means of dealing with debt. For debtors they provide protection from creditors, debt forgiveness, flexibility in terms of what assets are included, and none of the restrictions, which apply in bankruptcy. For creditors they provide a better return than could be obtained in bankruptcy.

IVAs allow debtors to repay their creditors that which they can reasonably afford and resolve their financial problems, and are supervised by licensed and regulated insolvency professionals.
The principal statutory alternative to an IVA is bankruptcy. Bankruptcy should always be the last resort as the debtor will lose control of their assets and will be subject to bankruptcy restrictions, potentially up to 15 years.

Consequently The Insolvency Service does not condone any implication that people in IVAs should stop paying and enter bankruptcy. If you have had any communication from the IVA Council or other third parties suggesting that you stop making payments under your IVA you should discuss this with the supervisor of the IVA and seek advice from professional, qualified advisers before taking any action.”

As the Insolvency Service make clear, anybody who receives a letter from the IVA Council or for anybody who is struggling to meet their monthly payments in an IVA, they should seek immediate advice from their IVA Supervisor, who should be more than eager to assist.

IVA Council - Original Concerns

Below are some of the original concerns about the IVA Council:

There was NO ‘Consumer Credit Licence’ number evident. You need this to be able to give debt advice, according to the requirements set out by the Office of Fair Trading

There were NO ‘Limited Company’ (Ltd) details, registration number or company address which is a mandatory requirement on all emails and letters from any Ltd company

They used the logo of IP trade body R3 in the past, which it NEVER had permission to do.

They offered NO ‘Data Protection’ registration details which is necessary for a business that will be recording data.

Credit Today published that ‘numerous attempts’ to contact IVAC had been unsuccessful (25 October 2007). Jonathan Baker, The IVA Council’s (IVAC) auditor later told Credit Today that the IVAC had been foolish by advising recipients of their letter to stop making payments into their IVA arrangements.

How to Get Free Bankruptcy Advice

If you are in an IVA arrangement and are being encouraged to petition for bankruptcy from a third party, again, contact your IVA Supervisor immediately.

THERE IS ABSOLUTELY NO NEED TO PAY SOMEONE ELSE TO PETITION FOR YOUR BANKRUPTCY

Payplan believe that all people struggling with debt should have access to free debt advice and that they should be made aware of the best debt solutions available to them. That is why Payplan provide free debt management plans, IVAs with no up front fees, and free debt and bankruptcy advice.

Call Payplan on 0800 917 7823 or contact their advisers online for free and ethical debt advice within 24 hours.

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.

Energy Secretary John Hutton has engineered a deal with the UK’s six biggest energy companies to potentially help the poorest households meet their fuel bills and clear utility bill debts.

Over the next 3 years, an extra £225 million will be found for social assistance programmes, designed to provide financial support to consumers struggling to pay their gas and electricity bills. The UK’s biggest energy firms who aim to help reduce fuel poverty are British Gas, Scottish & Southern, E.On, Scottish Power, NPower and EDF.

Help Welcomed By Payplan Clients

Any extra financial support from the energy industry will be welcome news to callers to Payplan’s free debt help telephone service, who, during the last 9 months, have seen a 9 per cent rise in their monthly utility bills.

Contact Payplan free on 0800 917 7823 or online further free debt advice to help you prioritise your utility bill debts.

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.

As creditors begin to reduce the amount of money available to consumers for mortgages and loans, many UK households are applying for credit from quick payday loans services to provide short term fast money to help meet their expenditure commitments.

Payday advance loans, an American import, have seen a boom in business in the UK since the beginning of the worldwide credit crunch, recent rises in the cost of living and mortgage rates. Unfortunately, they don’t come cheap, and often hide an underlying debt problem.

During an interview for BBC Radio 2, John Fairhurst from Payplan, the free debt advice organisation said:

“Often the sums are quite small, just a few hundred pounds, but the interest rates charged are enormous. A thousand per cent APR is not uncommon.”

At these rates, for every £100 borrowed, debtors could be paying back an extra £25.

John Fairhurst explained that for someone who was employed and had a cheque book bank account, ‘instant cash advance loans’ or ‘payday loans’ were relatively easy and straightforward to obtain. He said:

“…you can walk in, write a post-dated cheque for payday for the amount and interest and walk out with the cash.”

The problem with short term loans or ‘quick money’ from payday loan companies is that once a person becomes reliant on same day cash loans, their debt problem can spiral out of all proportion to the original amount that was borrowed.

For those that are struggling to meet their bills and pay their mortgages, rent and council tax, payday loans cannot be the best way forward. Payplan, who offer free debt advice and free debt management plans, can also offer budgeting advice to enable debtors to prioritise their costs and help deal with their debts without the need to rely on emergency cash advances from payday loan companies.

Call Payplan free on 0800 9177823 or, submit your details confidentially online using their Debt Calculator or Quick Debt Enquiry.