payasUgym.com: News that Gym Membership is to be Targeted by Mortgage Providers Represents a Further Blow to the Fitness Industry

London, UK (PRWEB) August 31, 2011

The Telegraph reports that in some cases UK Asset Resolution (UKAR) will even make credit checks to see which borrowers have mounting debts, and where appropriate, contact these customers to help them ‘prioritise’ their finances. The consequence of such enforced cutbacks represents a further blow to the fitness industry at a time when the full impact of a recent High Court ruling on the ‘fairness’ of gym memberships is yet to be seen.

A report released in May of this year by IBIS World suggested that overall revenue in the gym and health club sector contracted by 3.8% in 2009-10 which, even accounting for the many variables in such analysis, gives an indication as to the extent of the challenges currently facing the industry.

Jamie Ward, co-founder of payasUgym.com states “Following the recent High Court ruling on gym membership this report could not come at a worse time for the industry. Many customers are already looking carefully at their financial outgoings and assessing where they might be able to save money if interest rates do go up in 2012 and the fitness industry will not be immune to this.”

“However, we believe that cutting back on health and fitness is a short-sighted plan given the burden already carried by the NHS for weight-related problems. Ultimately these proposals could end up costing the UK a lot more in the long term, therefore it is the responsibility of the fitness industry to adapt so that fitness is not the casualty of financial cutbacks enforced by state-owned mortgage providers and affiliated organisations.”

The Telegraph reports that most economists are forecasting an interest rate increase at some point in 2012 which could make next year a pivotal year for the fitness industry as a whole. If organisations such as UKAR follow through on their stated plans to help mortgage customers ‘prioritise’ their finances then pressure on services such as gym membership will likely increase further.

With interest rates currently at historically low levels there are mounting concerns that even small changes in interest rates will leave thousands of families unable to meet their financial obligations. The Telegraph reports that even a rise of just one percentage point could reduce the disposable income available to each UK household by £230. As a result, UKAR has identified around 30,000 borrowers with mortgages provided by state-owned Bradford & Bingley and Northern Rock that may be at risk.

For further information on payasUgym.com, please contact:

info(at)payasUgym(dot)com

Notes to Editors:

Website: http://www.payasugym.com

payasUgym.com was founded by Neil Harmsworth, Jamie Ward and Michael Blake who are all available for interview

Company Information:

The idea for payasUgym.com was created by Jamie Ward, Neil Harmsworth and Michael Blake after discussing the difficulties in finding decent gyms in London that people can just go to on a one-off basis.

payasUgym.com was launched in February 2011 and currently has over 130 gyms available and plan to launch in Manchester and Birmingham later in 2011.

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