Debt Help Sought By Over Sixteen Thousand In January
Calls to debt helpline indicate recession is far from over
Following today’s publication of the insolvency figures for quarter four of 2009, Payplan, the free debt solutions service, has revealed that calls to its debt helpline totalled over sixteen thousand in January alone.
John Fairhurst, managing director at Payplan, said:
“Although official figures tell us that the UK is emerging from recession, we know from the experiences of those people we help that the effects of the economic downturn are still being felt by vast numbers of Britons.
“We were contacted by more than sixteen thousand people in January this year, who are seriously concerned by their debts. Worryingly, there will be many more individuals who have not yet sought help – the longer the debt is ignored the worse the problem will become.”
Today’s figures from The Insolvency Service reveal that more than 35,574 people were declared insolvent in the last quarter of 2009, an increase of 24.9% on the same period last year.
Of those individuals made insolvent over the three months to December, 17,007 people were declared bankrupt and 13,219 entered into an individual voluntary arrangement (IVA) with their creditors, while the remaining 5,348 signed up to the Government’s new Debt Relief Orders.
Notes to Editors
For further information please contact:
Payplan Press Office
For further information please contact:
Jane Jenkins,
Payplan PR Manager
Email: jane.jenkins@payplan.com
Telephone: 01476 581 279
Debt Relief Orders
A Debt Relief Order is a cheaper form of bankruptcy for people on low incomes. Introduced in April 2009, they allow those with debts of less than £15,000 and assets of less than £300 to declare themselves bankrupt for a fee of £90, rather than the usual £510.
About Payplan
Payplan is a free debt advice and solutions service that provides impartial advice to people in financial distress. Payplan helps over 100,000 people every year and works closely with organisations in the field of money advice and consumer and employee welfare.
Payplan’s freephone debt helpline is open six days a week, call 0800 280 2816 to speak with an experienced debt adviser. Lines are open 8am to 9pm Monday to Friday and 9am to 3pm on Saturdays. Alternatively visit www.payplan.com.
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Debt Counsellor Of The Year – Credit Today Awards 2009
Payplan’s Debt Counsellor Of The Year
Payplan’s specialist money adviser Diane Watson, has been voted ‘Debt Counsellor of the Year’ at the tenth annual Credit Today awards in London.
Diane was amongst four other experts from leading debt advice providers all shortlisted to win this prestigious title. However, the judges at Credit Today recognised her twelve years experience and expertise in providing free financial advice to those who need it the most – and the title was won.
Debt Counselling Expert
Judges assessed nominees from 70 companies using a very specific set of criteria. To become ‘Debt Counsellor of the Year’, Diane had to demonstrate and provide evidence of her technical and legal knowledge of the debt advice sector, her strong counselling and communication skills, and her commitment to raising awareness of debt issues within the retail, corporate and voluntary sectors.
On receiving the award, Diane said:
“I was delighted and overwhelmed! The evening has been an experience to remember, and I’m so pleased to win this award for myself and for Payplan.”
John Fairhurst, Payplan’s Managing Director, said:
“Diane is an ambassador for Payplan and I’m delighted that her expertise in client care and providing debt advice has been recognised by Credit Today. This award is richly deserved and everyone in Payplan is very proud of Diane’s achievement.”
Notes to Editors
About Diane Watson
Diane Watson is a trained money adviser with twelve years experience. She manages Payplan’s Special Advice Team, which is responsible for requesting medical write-offs for terminally ill clients, offering advice and guidance to clients who have no surplus income, looking after clients waiting to go into a debt management plan or an IVA, and offering specific debt advice including bankruptcy and repossession.
The tenth Credit Today awards were held at The Grosvenor Hotel, London on Thursday, 14 May. Over 70 companies were shortlisted in 22 categories and over 1,100 guests took part in the celebrations.
About Payplan
Payplan provides free, ethical and immediate debt advice to over 100,000 people every year, working closely with organisations in the field of money advice and consumer and employee welfare. Payplan have excellent relationships with both creditors and consumer groups, such as National Debtline, the Citizens Advice Bureau and high street lenders.
Freephone: 0800 280 2816, six days a week to speak to an experienced debt adviser. Lines are open 8am – 9pm Monday to Friday and 9am – 3pm on Saturdays. Visit www.payplan.com
Payplan Press Office: Contact Rachel Heath 01476 539251, or email rachel.heath@payplan.com
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Payplan Reports 14% Jump In Debt Help Sought
Lenders Refer 81% More Customers To Seek Debt Help
January 2009 saw a 14% jump in the number of over-indebted consumers seeking help from Payplan, when compared to the final week of January 2008.
Payplan, the leading free debt solutions provider saw the number bolstered by a huge increase (81%) in the number of debtors referred by lenders. We believe that this is a result of lenders identifying and encouraging ‘at risk’ customers to seek independent debt help which considers the whole of their financial position.
Key Debt Facts*
• 14% increase in January 2009 calls compared to January 2008
• Payplan took on an average of 2,134 new debt cases each week this January**
• The last three months (Nov, Dec, Jan) shows an increase of 62% for lender referred calls
• January 2009 shows an 81% year on year increase in lender referrals
John Fairhurst, Managing Director of Payplan, commented on the figures:
“We have received a record number of calls every week this year. This is both down to individuals deciding to take control of their finances, and lenders who want to see a positive outcome for both themselves and their customers.
“It is heartening to see that increasingly creditors are helping their customers to deal with the whole of their debt problem, rather than just concentrating on the money owed to them.
“This huge increase in calls resulting from lender activity shows a demonstrable commitment to responsible lending and treating customers fairly, which was reiterated at November’s APACS and BERR credit card summit.”
Notes to Editors
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.
Freephone 0800 280 2816 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 www.payplan.com.
Payplan Press Office
For further information please contact:
Jane Jenkins,
Payplan PR Manager
Email: jane.jenkins@payplan.com
Telephone: 01476 581 279
*All figures can be attributed to Payplan. Further breakdowns are available on request.
**Factoring out the late end to the festive period.
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Debt Denial – Middle Aged Delay Debt Help
Middle Aged Worst Hit By ‘Debt Denial’
Debt Denial – Britons are short by £693 on monthly household budgets before they seek debt help
Britons are still waiting far too long to get help with their debts, according to new research from free debt solutions provider Payplan. Research on over 100,000 customers has revealed that they are short by a monthly average of £693 on their household expenditure when they seek assistance for their debts.
This figure varies by age, with middle aged debtors suffering under the largest difference between income and outgoings (an income of £1,864 vs. expenditure of £2,452). At the other end of the scale, 20-30 year olds seeking help for their debt problems come to Payplan with a deficit of almost £400 a month on their outgoings.
Key Payplan Debt Facts
- Britons wait until they owe more than 50% of their income to creditors before seeking help.
- The average unsecured monthly debt repayment is £901.40.
- Indebted Britons wait until their deficit stands at £693 before seeking help. This deficit is growing; last year it was £671.
- The largest deficits, and the largest growing deficits, are those of 40-50 and 50-60 year olds. The average deficit for this age is £837, with a deficit growth of £67.
- In 2008, homeowners spent 52.15% on their unsecured debt repayments, compared with renters, who spent 49.48%.
- The over-sixties have the largest excess debt as a percentage of their income. With the gap between their income and expenditure standing at £724, to cover their debts they would need a 55% increase in their income – although many are approaching retirement and a reduced income.
30-40 Year Olds Bucking Trend
The one group bucking the trend and coming to Payplan earlier, with smaller deficits, are 30-40 year olds. Although their deficit is still high, at £659.22, it has reduced by £60.00 a month in the past year, sparking suggestions that this particular group are choosing to get help sooner rather than later.
John Fairhurst, Managing Director of Payplan, commented on this research:
“We strongly urge people to get advice on their options as soon as they feel they have a problem. You might be scared to tell your creditors that you are having difficulties, but you shouldn’t be afraid to tell an independent and confidential debt advice agency.
“Our research shows that British debtors are waiting far too long before seeking professional help. Prior to the credit crunch, if Britons couldn’t afford their repayments they would often borrow further to pay them off, which clearly just made their situation even worse.
“Now what we are seeing is an increase in calls as people realise that they simply cannot borrow more money. Our statistics show that the problem increases dramatically with age. The earlier customers come to us for help with their finances, the better for them.”
For free debt advice and free debt solutions contact Payplan on 0800 280 2816 or through the online debt calculator.
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