The big freeze is having a catastrophic effect on people and on their physical and financial health. A number of people have already died in the UK and Ireland after falling to the ground close to their homes. They were generally elderly people who were living alone. Further casualties are expected even as the thaw sets in. Hospitals are inundated with patients seeking treatment for broken bones following slips and falls.
Many people have missed time at work because of the cold spell due to the inadequacy of transport services and the conditions of the roads. Airports have been shut down and rail services have been suspended. Many people will see the effects of this in their pay-slips as employers dock wages for non attendance at work, regardless of the fact that employees were blameless in the matter.
For people confined to their homes, heating bills have soared and many people are consciously running up huge electricity, gas and heating oil bills trying to keep warm. It is anticipated that there will be a huge surge in people seeking assistance in managing their finances when the cold spell ceases. January and February 2011 will bring little solace to those who have endured a torrid Christmas in 2010 and who will be unable to pay their energy bills, let alone deal with the extra expenses of the festive season.
For people who need professional financial advice however, help is at hand. In Ireland MABS (Money Advice & Budgeting Service) provides an advisory service for citizens with financial difficulties. MABS is financed by the Irish taxpayer and it negotiates with creditors on behalf of the debtor to come up with an affordable payment plan which the beleaguered debtor can hopefully sustain. Ongoing management of such a plan however is the responsibility of the debtor as MABS does not have the resources to provide ongoing debt management services. There are a number of professional Debt Management Companies which are not funded by the Irish taxpayer and which provide debt management services on an ongoing basis and not just the initial set-up of such a plan. The debtor makes an affordable monthly contribution which is paid to creditors on a pro-rata basis, after deduction of the management fee. The fee is usually limited to 15% of the ongoing monthly contribution. There may also be an initial one-off set up fee payable.
In the UK there are a wide variety of financial solutions available to the distressed citizen. These include Bankruptcy, Individual Voluntary Arrangement, Debt Management Plan, Debt Relief Order, Administration Order, Debt Consolidation or indeed some other tailor made financial solution. A wide variety of commercial firms provide insolvency and financial management services in the UK on a fee charging basis. As well as that a number of non-fee-paying organizations provide financial services. These include CCCS and Payplan which are funded by creditors and not by the debtor and CAB. Citizens Advice and every Citizens Advice Bureau are independent charities, reliant on the support of a wide range of funders including central and local government, charitable trusts, companies and individuals.