Debt looms as unemployment takes hold, expert warns

A tough job market and discouraging unemployment figures are making it increasingly likely well-meaning savers will face debt problems instead, an expert suggested.

During the third quarter between July and September, 129,000 people were added to the unemployment bracket amid a 0.4% dip in the number of people in jobs, the Office for National Statistics revealed.

As such, the Money Advice Trust has projected less people will be able to save for retirement as 7.2% of youths come head-to-head with debt issues.

It further projected that one in eight of the newly unemployed are on course to combat severe debt problems.

The charity’s Chief Executive Joanna Elson said: “the drop in income can change your financial position drastically.

“The knock-on effect can take a few months to be fully realised, so we expect the full force of growing unemployment to really hit home early next year.”

She described the combination of unemployment, increased energy bills and inflations hikes as a “recipe for trouble.”

Source: www.pru.co.uk