Loss of Income is biggest cause of debt problems

Consumer debt in the UK is being accelerated by the changing and challenging job market according to the latest analysis from EuroDebt Financial Services.

According to EuroDebt, loss of income is the biggest single factor for people entering into a Debt Management Plan (DMP) or IVA (Individual Voluntary Arrangement) and over a quarter of its clients are said to have entered such a DMP in the past tax year for this reason alone.

If you add to this startling fact that Redundancy and Unemployment also account for another 11% combined then overall nearly 40% of Eurodebts clients are facing debt woes due to a change in their job status and income.

The frightening element to these figures is that unlike reckless overspending, or irresponsible consumer borrowing, loss of employment is out of the hands of the consumer. This paints a bleak picture considering the continued job losses and the future full impact of the Public Sector Spending Review (i.e. more job losses) yet to take full effect.

These findings should certainly ring warning bells for those families already struggling and with money education charity Credit Action reporting month on month increases to debt problem enquiries at Citizens Advice, spiralling State debt, and more economic uncertainty ahead, more than ever the state of householders financial well being looks somewhat rocky to say the least.

CCDR does not operate in the debt markets highlighted in this debt industry news item. Corporate Credit Debt Recovery Ltd is a commercial debt recovery business offering small businesses to large corporate enterprises, debt recovery, debt mediation and outsourced credit control solutions from its offices in Spain and UK based, Liverpool head office.

If you are an individual in financial difficulty there are charities such as CCCS that can offer you impartial and free advice before considering whether or not to enter into a Debt Management Plan, or IVA