Unemployed Struggle with Debt
Unmanageable debt is an increasing problem as the nation struggles with inflation, redundancy and public sector cuts.
Official statistics reveal 13 percent of those made redundant in the last three years have unmanageable debt and with no income to start repayments.
There are nearly 2.5 million unemployed people in the UK, the Money Advice Trust revealed, with 5.8 percent struggling financially.
Price Waterhouse Coopers have also predicted a rise in credit card and personal loan costs this year, making it harder for those in debt to pay them off.
The research by the Trust also showed that unemployment and high credit rates are two factors that are closely linked to the level of demand for debt advice.
“Our concern is that it is looking as if the public’s recession starts here,” said Joanna Elson OBE, Chief Executive of the Money Advice Trust.
Other research by Aviva into British family finance trends showed the economic climate is causing an added strain on many households’ finances to cover everyday living costs.
The study revealed 39 percent are too stretched to take on any financial obligations like saving for the future, as their current income can only just cover their expenditure.
While a worrying 57 percent are worried about the next six months and how they will stay afloat financially.
The O2 Load and Go Prepaid Card
If debt is a problem you are keen to get on top of then the O2 Load and Go prepaid card could help you budget, so you have enough left at the end of the month to repay your creditors.
The card, set up by O2 and NatWest, is available to anyone over the age of 13 years old and is free to purchase.
Users can top the card up with up to £1,800 worth of funds a year, to use to purchase items in retail shops, online or to obtain cash.