Support for employees facing multiple debts

Support for employees facing multiple debts

Rachel Duffey, CEO of PayPlan, explains how the free FCA-regulated debt advice provider is supporting employees across the UK with debt problems and how demand is likely to change. 

PayPlan has been providing free debt advice for over 25 years. We started out by working solely with police officers and now work with the free advice sector, creditors and employers, to help people with multiple debts.  

As well as advising people over the phone, we’re also adaptable in our digital approach. Digital communication like email, WhatsApp and, more recently, screen share facilitates have made the debt advice process more practical and less daunting.

The reasons that people find themselves in debt have been subtly changing over time. What hasn’t changed though is that people in debt experience huge levels of stress. They often don’t know where to turn for help and, as a result, often find it difficult to see a way out.

Of course, Coronavirus has resulted in huge changes to our lives and the economy. These changes are rapidly intensifying how we are helping people today and what the next few months hold.

PayPlan’s approach for clients impacted by Coronavirus

Almost two thirds of people who contacted PayPlan from March to June this year told us that Coronavirus has contributed towards their financial difficulties. 

Not only have some household incomes been negatively impacted due to a reduction in income, but there is a real sense of people wanting to take stock of their finances; doing some serious financial preparation and making repaying debts a priority. 

Advice becomes more difficult if there is a delay in seeking help. These delays could be caused by taking payment holidays when in fact debt advice would have been more appropriate or a spike in redundancies when people were expecting to go back to the same wage as pre-lockdown.  

The longer a person’s debt problem is left to grow, the harder it is to give advice. There is a danger that payment breaks and a lack of job security could contribute to a wave in demand for debt advice in the autumn.  

Flexible Debt Management Plans 

Now, more than ever, it is important that we can keep people engaged in the debt advice process and can give robust advice for people whose situations are likely to change in the future. 

With this in mind, we are seeing more flexible Debt Management Plans to help clients deal with their debts today, while they are facing uncertainty about their future circumstances.

Each person who comes to PayPlan receives a full regulated advice session, including our usual detailed assessment of income and outgoings. We keep in regular touch with our clients, so if their circumstances change, we can adapt our support for them. This includes managing the transition to higher payment levels and realistic repayment periods, when things improve.

For clients who genuinely don’t know what the future holds, we are providing short-term support to help them manage payments at an affordable level. Again, we are keeping in touch so that we can re-advise once their situation becomes clearer.

Business and self-employed debt advice 

Our business focused team now offers an additional level of support for freelancers, those in the gig-economy, with buy-to-let properties and people with small businesses – whether they are a sole trader, limited company or partner.

We don’t yet know exactly how lockdown will end, but even the strongest businesses are likely to experience a slow return to previous trading levels. That, coupled with the upcoming phasing out of furlough, dwindling government grants and normal expenses resuming means that for many, this period will be at least as tough to survive as lockdown.

Meaningful partnerships and support for vulnerable clients

Anyone in problem debt could be identified as vulnerable. So, it’s hugely important that we make each interaction count and every single person who seeks advice receives compassionate support. 

Every frontline PayPlan adviser receives intensive vulnerability training, and our particularly vulnerable clients receive specialist support from the vulnerability team where we have a variety of professional skills like mental health first aiders and support workers. 

We choose to carefully partner with trusted providers to ensure everyone gets holistic care. Our referral networks include organisations like Gamcare, national domestic abuse charity, Refuge, Samaritans, National Bereavement Service and Victim Support.

A clear and secure debt referral process

Debt advice only works if you engage effectively and can break down the barriers that individuals have in seeking advice and taking the next step to becoming debt free. We do this by working closely with our referral partners to implement secure referral routes and by delivering simple, effective and fair solutions.
If you’d like to find out more about how PayPlan works with companies to provide employees with free debt advice, visit: www.payplan.com/payplan-partners/employer-resources/