Many Britons to seek debt help after second Christmas on the dole

23/12/2009

The number of people forced to seek out professional debt advice after losing their jobs has risen significantly over the past year, newly-released figures suggest.

According to the statistics compiled by the Trades Union Congress (TUC), some 201,015 people had been claiming Jobseeker's Allowance (JSA) for 12 months or longer at the end of November.

This compares with a figure of 103,930 recorded just before Christmas 2008, with this rise in long-term unemployment likely to be causing major personal finance worries in households across the UK.

The figures also show Britons over the age of 50 and those who have taken an extended amount of time out of the world of work, for example to start a family, are the most likely to struggle to find a new job.

Brendan Barber, general secretary of the TUC, commented: "Every job loss is a human tragedy, but when people are out of work for over a year they risk being permanently scarred by joblessness."

This comes soon after the TUC stated its belief that the UK economy is "still on a knife edge", with rates of unemployment having picked up again over recent months.

Kevin Still, director of EuroDebt, said: "With union leaders saying that the number of people spending their second successive Christmas on the dole will double to over 200,000 this year, it is no surprise that these people will be struggling financially.

"It is often when new employment is found that the full impact of debt repayments may hit, as lenders that are owed money recognise that there is little point in chasing someone with no disposable income.

"Solutions like Debt Management Plans and IVAs become applicable when you have regular income with some disposable income to offer to unsecured creditors."

Tags; Job loss,

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