Debt advice: Pay expectations flatline in 2010

04/03/2010

More than half the UK workforce expect to get no pay rise during 2010, new figures have shown.

And with inflation standing at 3.5 per cent in January, on top of the 16 million who expect to get nothing, a further nine million are likely to get a pay rise that is less than inflation.

That means that huge numbers of people can expect to suffer a loss of income in real terms of the course of the year.

The study from uSwitch found that 31 per cent of people expect to be worse off in 2010 than in 2009, as numbers out of work continue to rise and growing numbers struggle with financial and debt problems'>debt problems.

In these circumstances, Britain's historically low interest rates assume an even greater significance – if they rise this year, even more people could be plunged into debt through mortgage arrears'>mortgage arrears and unsecured borrowing.

Vance Parsons, director for EuroDebt, says: "Loss of income remains the primary reason why people start a Debt Management Plan'>Debt Management Plan (DMP) with EuroDebt and further reductions in disposable income will mean that more people with move into a position of having unmanageable debt problems."

• Share
• 
• 
• Store
• 
• Follow
•