Debt management can help borrowers cope with period of unemployment

16 October 2008

Unemployment figures are rising, according to the UK Statistics Authority.

‘The employment rate for people of working age was 74.4 per cent for the three months to August 2008, down 0.4 from the previous quarter and down 0.1 over the year.’

With more economists predicting a recession, higher levels of joblessness are almost inevitable. Clearly, this can have a negative effect on the nation’s economy – but what really matters to individuals is the effect on their own household.

“For anyone in debt,” said a spokesperson for debt management company Gregory Pennington, “the threat of unemployment is particularly worrying. The debt repayments they may have found manageable while they were working could suddenly be entirely unaffordable if they lost their job.

“However, there are debt solutions that can help borrowers cope with this. Our debt management plan, for example, can be an excellent way to help borrowers stay in control of their debts when their level of income changes.

“When someone joins our debt management plan, we talk to their creditors and try to negotiate an affordable repayment plan. If their income drops while they’re on the debt management plan, we’ll go back to their creditors, explain how their circumstances have changed and ask them to accept lower payments until our client’s financial situation has improved.

“So debt management can make all the difference, helping people manage their debts during a period of unemployment, rather than falling further behind, ending up with late payment charges, defaults registered on their credit record and so on.”

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

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Gregory Pennington are founder members of DEMSA (Debt Managers Standards Association).

DEMSA are the first trade body within the finance industry to successfully secure approval for its code of practice under the OFT Consumer Codes Approval Scheme (CCAS).