Insolvency Expert Comments On Latest Research On Jobs

People suffering with financial difficulties have been urged by an insolvency specialist at Irwin Mitchell to seek advice as soon as possible, following the release of new unemployment figures.

The statistics from the Office for National Statistics confirmed that unemployment rose from 28,000 to 2.67 million during the three months to January, with the rate now standing at 8.4 per cent.

Commenting on the announcement, Andrew Walker, chair of R3 in Yorkshire and partner at Irwin Mitchell, said: “The increase that we have seen today in unemployment levels is likely to lead to more people struggling with their personal finances.

“We know that a change in circumstances, such as unemployment, or even being out of work long-term can result in debts mounting.

“Recent research by R3 has found that 18 million people are worried about their current level of debt, and 20% of people have no savings at all. What is even more worrying is that although 18 million people are concerned about their debt levels, only 1.4 million are likely to seek advice in the next six months.  This equates to just one in 13 with debt worries likely to do something about it.

“This is set against record levels of personal insolvencies, and nearly a third (32%) of people thinking their personal financial situation will worsen in the next six months. We are also still seeing ‘habitual debtors’, with 6% of people saying they are paying the interest on their credit card but not reducing the debt itself, a situation which may well be exacerbated if someone is unemployed.

“It is vital that people experiencing difficulty seek advice early to avoid challenging circumstances leading to an unavoidable bankruptcy.”