Ongoing studies have highlighted that unemployment can bring about sizable and enduring debt issues and these too can have an effect on future work possibilities.

Unemployment, whether it be a temporary or long term can cause a household to tumble into critical debt problems which may take years to sort out. So most Debt Agents are well versed in the area of joblessness and will be able to assist.

In economic terms there are four main causes of work loss. A brief outline of these and the issues that relate to them is as follows:
1. Technological
The persons seeking work do not have the skills desired by potential employers. This becomes a training issue.
2. Structural
The candidate does have the skills wanted by employers but they live in the incorrect place and are not able to move.
3. The economy in recession
In a recession, people spend less to preserve their available funds and increased levels of unemployment serves to slash consumer spending even more. This results less job places.
4. Frictional
This is commonly temporary unemployment - people who are between jobs.

So what can familys do to reduce the consequences of debt when they’re out of work? One sensible move is to buy insurance policy which will continue to pay your mortgage or rent if you are out of work due to sickness, injury or redundancy. This cover will not necessarily fix the whole problem, but it definitely becomes far more manageable. You can also acquire insurance that will partially enhance your income if you’re off work. Often these policies will continue to pay out for 12 months (some will run for 2 years) giving you breathing space and time to find alternative employment. The cost is usually in the area of £41 to £70 pcm for each £1,000 of monthly income to be provided.

It’s a fact that almost 8% of all adults in British Isles, over four and a half million individuals, have seen the amount of their debt increase over the last six months according ongoing research. While most of those individuals were comfortable with the rise, 58% had budgeted their rise in borrowings into their outgoings. But 42% of those surveyed, nearly two million people, were totally ill-equipped for slipping further into debt .

If you are getting concerned about the level of your debts, make a call to your lenders as quickly as practical, because the quicker debts are dealt with, the easier they will be to sort out. If, despite the discussions with your lenders, you continue to be under financial pressure, you should enquire into independent financial advice.

It’s a certainty that many people are now volunteering into Individual Voluntary Arrangements (IVA) but this needs to be done through a licensed insolvency practitioner.

An Individual Voluntary Arrangements (IVA) is a legally binding contract. It is a proposal to creditors to pay a percentage of the debt in monthly instalments over a over an agreed time frame, usually five years. So long as 75 per cent of your unsecured creditors agree to the IVA, it becomes binding to all your creditors. An IVA is but one of several alternatives that will help those excessively burdened by debt. Our advice is to allways find professional assistance.

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