Loan Companies Recommending Debt Advice For More Borrowers
As we have reported in the past, the level of personal debt in the UK on things such as personal loans and credit cards has risen dramatically over the course of the past few years, to reach a higher level than ever before.
But in the current financial situation in the country, with the economy slowing, the UK officially in recession and unemployment figures rising, many individuals with debts are beginning to find it increasingly difficult to keep up with the monthly repayments on their personal loans and credit cards.
According to one debt advice company banks and building societies have now started to refer borrowers facing problems to specialist companies for professional advice on their cards and personal loans.
Payplan have announced that they have seen an increase of 81 per cent in the number of cases being referred to them by banks to the end of January this year, from twelve months previously and have taken on an average of 2,134 new debt cases every week throughout last month.
The majority of this increased referral business has come in the last three months, with the company seeing an increase of 62 per cent in new cases between November 2008 and January this year.
John Fairhurst of Payplan said “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.”
