Official figures released today show that unemployment in the UK is the highest it has been for 12 years, which suggests that more people could be at financial risk if they don’t practice sound debt management skills.
The figures from the Office for National Statistics showed that UK unemployment rose to a 12-year high of 2.26 million during the three months to April, up by 232,000 during that period.
This means that there are an increased number of people who will find repaying their outstanding unsecured balances (like overdrafts, personal loans and credit card debt) more difficult, and if left untreated these could develop into serious debt problems.
As a result, debt management organisations have seen the number of enquiries for their debt advice soar from the recently unemployed, as people struggle to maintain their current credit commitments.
The unfortunate workers who have either lost their jobs or who are finding employment increasingly difficult in the current climate will no doubt welcome the free debt advice being offered by reputable debt help organisations such as Chiltern, The Debt People and Hamilton Locke.
These trusted debt management companies can assist overstretched individuals to regain control of their finances through any difficult period, such as during unemployment, whilst ensuring that their credit commitments are being repaid.
Their debt management programmes include Individual Voluntary Arrangements (IVAs), Debt Management Plans (DMPs) and Trust Deeds amongst others.
Programmes like these enable debts to be combined into one easy-to-manage monthly payment, which is then distributed amongst all outstanding unsecured balances.
The amount that is paid each month is dependent on your disposable income. With a debt management plan, this can be altered according to your changing financial situation – so if you are temporarily out of work, and your income decreases, your payments can be lowered to reflect this.
Likewise once employment is found, and you’re receiving a regular wage again, your repayment can be increased again to repay debts faster.
With an IVA repayments are made over a fixed period of time (usually five years), after which all remaining unsecured balances are written off. Trust Deeds are also repaid over a fixed term (usually three years), however these are only for people living in Scotland.
If you would like to find out more about the debt management programmes available to you, or for some free impartial debt advice, please call the number at the top of this page.
The debt and IVA advice you receive will be free, and any programmes offered will be tailored to your situation.