Debt Problems, An Increasing Threat For The Unemployed

With close to 2.5 million people unemployed in the UK, debt problems will become increasingly likely for many of those who have lost their jobs warns a leading debt charity.

There were 44,000 people who became unemployed in the last quarter of 2010, bringing the total number of unemployed to close to 2.5 million. The Consumer Credit Counselling Service (CCCS), a debt charity, is warning that people losing their jobs are much more likely to suffer debt problems in the near future.

A quarter of people contacting CCCS for help in 2010 were in financial difficulty due to unemployment and almost 11 percent were claiming Jobseekers Allowance.

The latest unemployment figures show the number of people claiming Jobseeker’s Allowance increased by 2,400 last month to 1.46 million, at a time when the cost of living is rising because of higher fuel and food costs.

The CCCS warns that the shock to family finances caused by unemployment can force thousands of people into unmanageable debt just to keep afloat. Last year, unemployed clients had a shortfall of £2,436 in the money needed to cover the costs of day-to-day living.

“Anyone who has lost their job and is worried about making ends meet should seek help as soon as possible before being tipped into the black hole of debt which can be a real struggle to get out of.”, advises Delroy Corinaldi, CCCS External Affairs Director.

The CCCS offers all their debt counseling services for free and are available from between the hours of 8am to 8pm, Monday to Friday on 0800 138 1111, or via their website.