R3 President, Frances Coulson, comments on latest unemployment figures
“The increase that we have seen today in unemployment levels, is likely to lead to more people struggling with their personal finances. We know that a change in circumstances, such as unemployment, or even being out of work long-term can result in debts mounting.
“Recent research by R3 has found that 18 million people are worried about their current level of debt, and 20% of people have no savings at all. What is even more worrying is that although 18 million people are concerned about their debt levels, only 1.4 million are likely to seek advice in the next six months. This equates to just one in 13 with debt worries likely to do something about it.
“This is set against record levels of personal insolvencies, and nearly a third (32%) of people thinking their personal financial situation will worsen in the next six months. We are also still seeing ‘zombie debtors’, with 6% of people saying they are paying the interest on their credit card but not reducing the debt itself, a situation which may well be exacerbated if someone is unemployed. It is vital that people experiencing difficulty seek advice early to avoid challenging circumstances leading to an unavoidable bankruptcy.”
Frances Coulson, R3 President