Date: 10th June 2011
June 10th 2011 - ‘Will I lose my house?’ is the biggest single question people ask Payplan’s helpline after they’ve been made redundant.
The free debt advice and solutions company helps over 100,000 people every year and while losing a job is a terrifying experience, Payplan says it doesn’t mean you’re automatically going to have your home repossessed. Help is at hand.
Simon contacted Payplan two years ago. The 39-year-old had a good job and was in control of his finances – in 2009 he was made redundant and struggled to keep on top of his payments, building up £22,000 of debt.
Despite finding more work, Simon had to take a big drop in salary that left him unable to meet all his repayments. Simon is now in a debt management plan and says he can see light at the end of the tunnel - a day when he will be debt free again.
Simon’s story is very typical of thousands of calls into Payplan’s helpline.
“Redundancy often happens totally out of the blue and comes as a huge shock,” explained Diane Watson, who leads Payplan’s specialist advice team. “It is devastating and turns people’s lives upside down. But it isn’t the end of the world, even if getting another job isn’t that easy.
“There are plenty of options available so while the job search goes on, the family finances and any potential debt issues are being managed.”
Free debt advice companies such as Payplan work alongside the Citizens Advice Bureau and the National Debtline to provide impartial help and solutions for individuals and families who find themselves in just this situation. Debt consolidation through a Debt Management Plan (DMP) or an Individual Voluntary Arrangement (IVA) are two of the solutions considered.
“If you’re out of work and worried that you’re going to creep into debt or have already started to do so, don’t leave it too late to seek advice,” added John Fairhurst, Payplan MD. “You could find the situation you’re currently in isn’t nearly as bleak as you first imagine.”
Read Payplan’s latest redundancy blog: http://www.payplan.com/debt-news/2011/03/17/redundancy/ or for more details and advice call Payplan, tel: 0800 280 2816 or go to the Payplan website: http://www.payplan.com/
Note to editors
Established in 1992, Payplan is a free debt advice and solutions service, providing impartial advice to people in financial distress. Payplan helps over 100,000 people every year, working closely with money advice, consumer and employee welfare organisations.
Payplan operates using the Fair Share Model - in this model the customer in debt makes one payment by standing order to the provider, which is then distributed to the person’s creditors on a monthly basis. In return, most creditors pay the provider what is called a ‘fair share contribution’ – a voluntary donation. This model means a quality service is provided with no need to charge the person in debt for advice or solutions.
Payplan is part of the Totemic Group and in March 2011 Totemic was named 19th in the Sunday Times Best 100 Companies to work for.
Payplan has a working collaboration with the Consumer Financial Education Body (CFEB) which is responsible for helping consumers understand financial matters and manage their finances better by providing impartial advice through a national financial advice service. CFEB was recently renamed the Money Advice Service and is available online(www.moneymadeclear.org.uk), in print, over the phone (0300 500 5000), and face-to-face.
Tel: 01733 371363