Local firm offers help following shock survey on ‘zombie’ debtors

A shocking survey realeased by R3 discloses that nearly one in 6 of us is a ‘zombie debtor’.  That is, they are only managing to pay interest on their debts and are not paying off any of the original debt.  Following the alarming results R3’s survey, which also shows nearly half the population struggles to make it to payday, local debt specialists Adcroft Hilton are urging people in debt to take action.  Anyone can get free personal debt advice on their debt problems, by phone or in person from a friendly advisor.  All advice is given in complete confidence.

MD of Adcroft Hilton, Rosalind Hilton, said that ‘we are concerned that people are taking out loans at very high interest rates, when they are already struggling to make ends meet.  Often, people opt for one of these loans because they don’t know there are other options available.  I would encourage anyone thinking about taking a payday loan to get independent advice from an expert first.’

On a typical pay day loan, borrowing £100 for 28 days would cost at least £25.  This may not seem much, but the interest is more than 1,700%APR.  While a payday loan may solve the immediate crisis, it doesn’t help with the underlying problems facing people in debt.  Adcroft Hilton’s friendly advisors have years of experience helping people out of the red and into the black.

With 45% of us struggling to make it to payday without borrowing, and about 15% us only paying the interest on their debts, there are many people facing a financial crisis.  This group of people is in a hole, but doesn’t know how to get out of it.  As long as interest is being paid, most lenders are happy.  After all, they make money by charging interest, so if you don’t pay any of the debt back, they can charge you more interest.

Anyone who is only paying interest on their debts is unlikely to solve this problem on their own.  Without a large increase in pay, or a lottery win, they are not going to be able to start repaying the original debt.  However, there are options available, including an Individual Voluntary Arrangement that will could the debt is cleared by paying what you can afford for five years.

Rosalind Hilton comments ‘We want to take the fear out of seeking help with debts.  We understand that people find it difficult to admit that they aren’t coping, and we know how easy it is for debts to spiral out of control.  Most people wouldn’t leave a leaking pipe in the hope that it will repair itself, so why not get us to help you repair your finances.

We want people to stop worrying about their debts and take action to solve the problems.  We offer free advice to all, and you can call any time Monday to Friday 9am – 5pm on 01253 299399 or pop in to our office at 269 Church St, Blackpool FY1 3PB.  Alternatively, send us an email to recover@adcrofthilton.co.uk and we’ll contact you at a time that is convenient for you.  We can visit you at home if that is easier for you.’