Debt In 2009 & Latest Insolvency Figures
Written by PayPlan on 7 November 2008
Calm Before The Storm: Payplan Expects A Large Rise In Bankruptcies And Numbers Seeking Debt Help Next YearJohn 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 PayplanFreephone 0800 280 2816 six days a week to speak with an experienced debt adviser. Lines are open 8am to 8pm Monday to Friday and 9am to 3pm on Saturdays. Or submit your details online using Payplan’s Debt Calculator.
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