The UK Payments Council have announced that cheques will be phased out by October 31st 2018 as long as a suitable alternative can be found. The Council believe that there should be “no scenario” for needing to write a cheque by that date and therefore the system that processes cheque payments is slated for closure on that date. According to their Board, cheques have been in ‘terminal decline’ for some time but the situation will continue to be monitored and no final decision will be taken until the last planned review in 2016.
In a statement the Payments Council promised that their goal “is to ensure that by 2018 there is no scenario where customers, individuals or businesses, still need to use a cheque. The board will be especially concerned that the needs of elderly and vulnerable people are met.” For many however, the demise of the cheque could be a recipe for further disaster as it encourages more people to apply for and use store and credit cards which often leads to individuals getting into debt problems as their spending is based on assumed future income rather than the historical norm of what money is available in the current checking account.
Debt Advisory Line who were recently named as the Debt Management Provider of the Year for the second year running receive hundreds of calls and enquiries every week from individuals who are struggling with debt and increased stress levels after finding themselves unable to manage their debt burden based on their available income. Redundancies, factory closures and a global economic crises are continuing to draw in new victims who are unable to pay utility bills, credit card balances, overdraft and unsecured loans. The death of the cheque and further moves to a credit based economy may only exacerbate this problem further.
Debt Advisory Line encourage anyone experiencing debt problems to take a look at their web site at www.debtadvisoryline.co.uk to learn more about debt management and the various options available to reduce and eliminate debts. Alternatively, they can call for free advice on 0800 157 7254.
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