IT consultancy Iridium invests in debt management app

16 September 2020 3 min. read

UK digital consultancy Iridium has invested in debt management brand Freeze Debt. Partnering with the mobile platform has already enabled the firm to help consumers manage £12 million in debt. 

With the average wage still lower in real terms than before the financial crisis of 2008, and the cost of living spiralling upward, UK consumers have become increasingly dependent on borrowing to make ends meet. According to The Money Charity, as of January 2020 the average total debt per UK household stood at £60,363, while 12.8 million households had just £1,500 or less in savings.

Prior to 2020, some 78% of UK employees had been found to source ‘alternative finance’ between pay cheques – placing 47% of the population in a position where they have experienced difficulties relying on pay day loans in particular. With the UK already on the brink of a debt crisis, the Covid-19 pandemic is almost certain to have compounded the situation. Amid the deepest recession since the Second World War, the UK Government remains committed to rolling back its support for workers across all industries in October, ending the furlough scheme that has preserved countless jobs throughout the lockdown period.

IT consultancy Iridium invests in debt management appAs more people face the prospect of courting consumer loan-sharks, and buy-now-pay-later firms which will charge them extortionate rates of interest in the long-run, the World Bank has warned that the coronavirus pandemic has triggered the most widespread global economic meltdown since at least 1870, and it risks fuelling a dramatic rise in poverty levels around the globe. As a large increase in total consumer debt looks almost certain, demand for debt management services is also likely to be high.

Based in Leeds, Iridium is a boutique digital transformation consultancy, whose team combines over 40 years of experience across business transformation and cyber security. As debt-encumbered consumers increasingly look for ways to keep their heads above water, the firm has announced a new partnership with debt management solution Freeze Debt.

An app for debt management

Last year, the consultancy invested £50,000 in Freeze Debt, and following the app’s launch in March 2019, the service has already helped users pay off more than £12 million in debt.

A co-founder alongside Sinclair Elliot, Iridium Director Ben Dainton said of the firm’s decision to invest, “When Harjit [Moore] approached us with his idea for Freeze Debt, we instantly recognised its potential to shake things up in its own sector… People may not want to discuss their financial situation on a phone call, and with the rise of app-exclusive based services across the board, from take aways to taxis, financial services to fitness, Freeze Debt has been launched at the perfect time to enable consumers to manage their debt in the same way they do everything else in their lives.”

Billed as the UK’s “first one-step debt solution app,” the Freeze Debt concept was developed by fellow Leeds-based entrepreneur Moore. A release from the firms stated that Freeze Debt’s easy-to-use interface and quick digital access represent a lifeline to the growing number people facing increased financial pressures. The service runs exclusively through the app and, free to download and use, features a messaging function where consumers can deal quickly with skilled debt advisors who provide confidential advice and offer solutions tailored to the user’s personal circumstances.

Moore remarked, “The Covid-19 pandemic has affected a lot of people financially, with many having a decreased salary or working hours, or unfortunately, being made redundant and losing their income entirely, and we’re here to help at this particularly difficult time… We’re delighted to have enjoyed the support of a likeminded, local company that understands the process of getting a good idea off the ground. Iridium’s Sinclair and Ben have been behind us every step of the way.”