Customers with major high street lenders such as HSBC and Lloyds are being urged to check out a free online help service. Now is a good time to check over your finances ahead of a major change in January.
You may not have heard of debt support group PayPlan, but many big name banks regularly refer their customers to them. Anyone can contact the group to ask for help with building a plan for their household finances, to get out of debt and to put themselves on a firm financial footing going forward. Major high street banks such as Santander, Barclays and Nationwide Building Society will often refer their customers to use PayPlan, as well as the newer digital banks such as Monzo and Zopa.
January costs increase
Rachel Duffey, CEO of the group, said they often get a surge in people asking for help at the start of the year - and that may well be the case again this coming January. She said: "We usually see a rise in the number of people reaching out to us in January, following the Christmas spending season. With the energy bill hike also expected, we will likely see more people reaching out to us to help.
"Seeking debt advice is nothing to be ashamed of and the earlier people access support, the more options they are likely to have to get their finances back on track." The Ofgem energy price cap is predicted to go up substantially in January. Previous predictions said it could increase by almost a quarter. More recent estimates have been a bit lower, still with a large increase expected. Financial expert Martin Lewis said on his BBC podcast on October 5 that the latest predictions then were for an increase of "around 20 per cent".
Getting help
Most people make their first contact with PayPlan online, with WhatsApp proving to be a hugely popular option. Virtual assistant named Speak about Money (SAM) is available 24/7 to help users get started. You can also reach out for help over the phone by calling 0800 316 1833.
Ms Duffey explained how the service puts together a tailored plan for a person: "We build a full picture of the person's situation with them, including their income, essential outgoings and who they owe money to. That gives us a realistic budget and shows what they can afford to pay towards their debts.
"We then explain the options available, which can range from budgeting help to arranging a formal debt solution. The customer will always decide what’s best for them." If a person opts for a plan, PayPlan contacts their creditors on their behalf to set up a single affordable monthly payment, which is then distributed to each creditor.
PayPlan says the rising cost of living has been a major reason for people reaching out to them for help in 2026. Ms Duffey said: "Ongoing cost of living pressures and the experience of not having enough money for so long has become exhausting for people."
Overcoming the stigma
The debt expert said people sometimes think people get into debt through poor financial decisions or personal failure. "That simply doesn't reflect the reality we see every day," Ms Duffey said. "Debt is often driven by life events such as relationship breakdown, illness, job loss, rising living costs or unexpected expenses. Increasingly, we're also seeing working professionals, homeowners and people in full-time work needing support."
Those who do not fit the traditional stereotype of someone in debt are often the most reluctant to ask for help. Groups less likely to reach out include middle-income earners, professionals, business owners and homeowners.
Asked how the debt support available could be improved, Ms Duffey said: "Debt advice and support needs to go beyond debt solutions alone. Building long-term financial resilience through financial education, budgeting support, savings habits and earlier referrals from lenders, employers and other organisations can help prevent problems from escalating in the first place.
"Given that many people seeking help are in work and may not fit traditional stereotypes of debt, there is also a need to reduce the stigma around financial difficulty and ensure support is accessible, non-judgemental and tailored to individual circumstances."
Partner groups
These are the core partners who regularly refer their customers to PayPlan for help and support: NatWest Group, Santander, Lloyds Banking Group, HSBC, Barclays, Octopus Energy, PRA Group, Cabot, Lowell, Lantern, Nationwide Building Society, Tesco Bank, Metro Bank, Monzo, Lendable, Zopa, Vanquis Banking Group, Capital One, PayPal, Creation Finance, Virgin Money, Close Brothers, Kensington Mortgages, OSB Group, Pepper Group, Topaz Finance, Coventry Building Society, Newcastle Building Society, Advantis Credit, COEO, Resolvecall, AIC, ARC Europe, Digital DRA and Opos.
