A ?tipping point? is the moment you realised you can no longer continue to cope and that you need some assistance.? In terms of financial tipping points each of our clients are different, but many of the reasons are the same.
I therefore decided to look at some of the most popular ones we deal with on a day-to-day basis.
Redundancy
Since the recession of 2009 we have seen more and more people coming to us after being made redundant. I once heard someone say that the average family only has enough money to get them through three months before they are at risk of debt crisis. I don?t know how true this is but it is thought-provoking never-the-less. It is clear than many people who are made redundant quickly struggle to keep up their repayments to creditors.
Relationship breakdown
When going from having two incomes to just the one with the same expenses it becomes very difficult for people to cope. I have spoken to several people who had joint debts with their partner. Once the relationship broke down they were left to pay the money on their own. If the debts are in joint names then the other partner is also liable for the debt and they can be chased for the full amount. This is called Joint and Several Liability; you can read more in another blog by clicking here.
Addition to the family
When a child joins the family it is hard to take into consideration all the extra costs. With more mums giving up work, as they can no longer afford to work and pay for childcare, it is becoming harder to afford to start a family. As the Welfare Reform Act comes into action more and more families will begin to struggle as they lose the benefits they are currently relying on.
Many of our clients, who call us after reaching their own tipping point, say they wish they had made the call sooner. So, whatever your tipping point may be, Payplan is here to offer non-judgmental help and advice.
Written by Gemma on March 26th, 2012
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