Rise in unemployment could lead to increased demand for debt help

24/12/2009

More people could be in need of debt advice going into next year as unemployment levels are expected to rise.

This is the suggestion from Phil Flaxton, chief executive of Work Wise UK, who said that, while the number of unemployed people will rise, figures will not be as high as expected.

"There are a significant number of people who have either decided they are not going to rush straight into the first job that comes along and financially they can support themselves," he commented.

"Many of these people will probably drift into self employment."

While these are the lucky few, many more people with personal income worries may be forced to seek debt help.

Mr Flaxton went on to say that increasing numbers of ex-employees are becoming part of "the grey sector", a term used to describe those not in work and not receiving unemployment benefits.

Recent figures from the Office for National Statistics revealed that the last quarterly increase in unemployment is the smallest since spring last year.

Kevin Still, director of EuroDebt, said: "As a Debt Management Company, the need to focus on income optimisation has become even more important and this includes understanding the benefit system on behalf of clients that are unfamiliar with claiming what they are entitled to."

Tags; Job loss,

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