Job Loss Main Cause of Debt
Brits are still suffering the consequences of a tough economic climate as new research shows loss of income is, unsurprisingly, the top reason for falling into debt.
To help budget your current finances compare a prepaid debit card to prevent overspending each month.
New data from Atlantic Financial Management reveals job losses were the main catalyst for 34 percent of people seeking debt advice since March to September 2010.
The company believe this trend is likely to continue as the Government’s Spending Review will cause employers to remain cautious in terms of pay and many in the public sector could experience redundancy.
“Debt is not the personal choice some consider it to be, as individuals are often left with few alternatives when attempting to balance finances in a difficult economic landscape,” said Kevin Still, Atlantic Financial Management director.
“With the prospect of job losses in the public sector coming out of the spending review, these findings are serious cause for concern.”
Of the 4,600 new cases reported in the study 23 percent cite juggling multiple credit cards and a number of creditors as the next biggest reason for needing debt help.
A further 12 percent admitted to poor financial management, while for 9 percent divorce or separation was a factor, 8 percent a physical illness, and 5 percent unemployment.
The analysis shows for the third consecutive time the primary reason for clients seeking help with their debts is due to loss of income.
Compare Prepaid Debit Cards
If you have experienced a loss of income or have had to take a job that pays less than your previous one due to the current climate a good way to manage your money is through a prepaid debit card UK.
This enables a family to budget exactly how much they can afford to spend over a certain period by loading the card with the funds, and it does not allow the card user to overspend.