Jason contacted Freeze Debt earlier this year, after struggling with being able to make his bill payments, due to being made redundant from his job.
Redundancy has affected many people in the UK, especially during the last 2 years, since the start of the COVID-19 pandemic.
We’ve had numerous people reach out to us during the pandemic, seeking out a debt solution; and many of these were because they were unable to keep up with bills after being made redundant.
In March 2020 this number jumped to 107,000 before reaching a high of 395,000 in November 2020; and now, numbers have reduced back to pre-pandemic levels with 94,000 redundancies being recorded in July 2021.
As Jason explains:
“The reason I got in debt is because I got made redundant from my job, and then the bills just kept adding up and I just needed some way of getting it to an affordable payment”
Jason’s debt was mainly made up of his credit cards and payday loans, which have ridiculously high interest rates. If a person's debt repayments build up to an amount that’s higher than their wage, they can end up taking out more credit to cover the cost and the vicious cycle of borrowing starts, making it difficult to survive even living paycheque to paycheque.
Jason’s total debt was £5334.
Research from Finder states that 3 in 4 payday loan customers take out more than one loan in a year and the average customer takes out 6 loans in a year.
This cycle of borrowing usually leads to further financial difficulties down the line, so seeking debt advice instantly can help debtors work towards a better financial future.
Alex Cerson, Debt Advisor at Freeze Debt, spoke about helping Jason choose the best solution for him in the most efficient way, alleviating any stress.
“Jason came to us after recently being made redundant, due to the economic effects that COVID has caused. He was no longer in a position to pay his day-to-day bills, as well as his commitment to his other debts.
This led to him seeking help and advice from us. After a lengthy conversation via the chat section of the app Jason decided to go for the DMP option, as he was in a position to make some form of payment each month to his creditors, as well as managing his day-to-day costs.
We were able to start his journey towards debt freedom within a day of contacting us!”
Jason chose a Debt Management Plan (DMP) as his best solution, as the monthly payment of £184 was affordable for him and it would mean that all of his debt would be paid off, rather than written off, as is the case with some other solutions.
“Overall the experience was excellent and I’d highly recommend to other people”
One of the reasons why Jason and so many other users choose Freeze Debt is because the app is easy to use and the human interaction users experience with our in-app messaging feature, where users can talk to our debt advisors in real time, creates a more personal and real experience.
About Freeze Debt
Freeze Debt is the first debt advice and solutions app helping UK users to take their first steps towards a debt-free future. Our free service provides those struggling with unmanageable debt a confidential space to speak openly about their debt and financial worries and find a suitable solution based on their personal circumstances.
Freeze Debt's in-app messaging service is a revolutionary and modern way for users to address their debts and find solutions in less than 5 minutes, compared to the traditional and uncomfortable ‘call-centre-model’ that can take an average of 45 minutes.
So far, we’ve helped clear over £30m of debt and helped many people begin their journey to a debt-free future.