Redundancy numbers causing debt worry

Wed, 09 Nov 2011

The number of redundancies being reported in the UK is causing worry that many individuals will not be able to repay their debts.

Indeed, the Consumer Credit Counselling Service (CCCS) has said it is concerned about the amount of workers being made unemployed at present.

The figures have been reported by the Office for National Statistics and showed 43 per cent of those who left their last role in 2011 did so because they were made redundant.

According to CCCS, losing a job is the main reason why people fall into debt, with 24.8 per cent of those who contacted the charity last year citing unemployment as the biggest contributing factor for their financial troubles.

Delroy Corinaldi, director of external affairs at the group - which assists around 500,000 people a year and was founded in 1993 - said: "Redundancy is a huge financial blow for those affected. While many will find new jobs, large numbers will not or will have a gap before they do."

He added individuals might therefore struggle to keep up with credit commitments they would otherwise be able to settle.
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