Experts predict rise in debt problems

Experts are predicting a surge in the number of people seeking advice for debt problems in the next two years, as job losses and rising living costs take their toll.

If the UKís economic turmoil has had an effect on your finances and debts are steadily building up, you can compare debt solutions with Money Expert.

The Money Advice Trust, the UKís leading debt advice organisation, is predicting a rise of as much as 40% in the number of people seeking debt advice in the next two years.

It says that places which have high levels of public sector employment, such as Northern Ireland and North East England, will see the biggest rises in debt problems.

With public sector job cuts looming, the Money Advice Trust says that these areas will feel the effects more than most.

ìHigh levels of unemployment can cast a long shadow over towns and communities, and one of the problems unemployment brings is that it is a major driver of financial difficulties,î said Joanna Elson OBE, Chief Executive of the Money Advice Trust.

ìThose areas of the UK that are likely to see unemployment grow as a result of public sector cuts are likely to see a correspondent growth in debt problems.î

Based on economic forecasts, the research predicts that 1.7 million people will look to debt charities for help with their financial problems ñ a 16% increase on last year.

ìWhilst it is a daunting task for the free debt advice sector to help all these people, the reality is that 1.7 million doesn’t reflect the true number of people facing financial problems this year,î added Ms Elson.

ìResearch shows around one in five households are struggling to meet their credit commitments, and it is vital anybody in this position seeks free, independent advice.î

You can compare debt solutions with Money Expert.

 

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