Redundancies, long term unemployment and debt statistics increase
By Paul Culshaw in Debt Advice Blog, Debt Management on 24 January 2012
The nation is on its knees as personal finances are becoming stretched to breaking point.
New research suggests that the number of daily redundancies, people falling further into debt and individual cases of long term unemployment has increased during the last quarter of 2011.
Credit Action, the leading debt charity, has published their January debt statistics to reveal that personal debt levels are soaring.
The average household debt, excluding mortgages, was a massive £7,982 in November, slightly less than October’s figures. However, the average household debt including mortgages has actually increased.
As millions plunge further into long term unemployment, personal finances are taking a huge hit. Shockingly, 868,000 people had been officially unemployed for over a year between August and October 2011.
With 1,764 people being made redundant on a daily basis between August and October last year, it might not come as a surprise that millions of Brits are struggling to keep up with payments and are, as a result, falling into debt.
Every four minutes someone will be declared bankrupt in the UK, which represents 331 people everyday working day. The charity also found that a property is repossessed almost every 15 minutes in the UK.
Further research from protection specialists Bright Grey found that more than a third of people don’t have any cash left over at the end of the month and are in debt as a result.
“There is no doubt that 2012 is going to be a tough year for consumers, and the fact that a third of people currently have no money left at the end of the month is a worryingly fragile situation to be in,” Roger Edwards, Proposition Director at Bright Grey said.
Spiralling into debt
If you are concerned about your levels of personal debt and finding a way to manage your finances, you may need to seek specialist debt advice.
ClearStart could help you manage your debts effectively by offering confidential advice.
