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08/12/2010

Over 4 million people fear redundancy

More than four million people (4,258,737) fear being made redundant according to R3’s quarterly personal debt tracker – an increase of 50 percent over the last three months. Those aged between 25 and 34 are the most worried, with one in six (16%) expressing a concern.

 The findings show that the number of individuals experiencing each “sign of financial distress” has increased since quarter three. The number of people who admit to falling behind with some of their bills and payments has increased by sixty percent, and is now close to the four million mark (3,785,544).

R3 President, Steven Law commented:

“These figures make grim reading. The number of people who have admitted to struggling has rocketed over the last three months, but this is just the tip of the iceberg. There will be many more ‘below the waterline’ who are struggling and have not yet admitted it.

“It is alarming that many believe that their jobs may be under threat and this fear may indicate that many believe that the worst is yet to come. The high level of concern amongst those aged between 25 and 34 may reflect their fear that they are more dispensable as they are less experienced.”

More than one in four (27%) people say that they are saving less than usual – up 3% on the last quarter. In fact, rather worryingly more than three million people have taken on more debt in the last three months.


Steven Law continued:

“It is startling that so many people have taken on further debt, especially when many believe their job to be at risk. The fall in the number of people who are saving suggests that savers may have been discouraged by low interest rates; however, it is always a good idea to ensure that people put money away for a “rainy day”. R3 advises anyone who is struggling with their debts not to ignore their problem, but to seek professional advice as soon as possible.”


Methodology note: ComRes surveyed 2035 adults online on behalf of R3 between 29th and 31st October 2010. Data were weighted to be representative demographically of all GB adults. Where population figures are mentioned, estimates have been extrapolated using the percentages from the results and adult population figures for Great Britain available from the Office of National Statistics. The full report is available on request.


R3 Press Office

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see www.r3.org.uk for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
     
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.