Those on unemployment benefits most likely to have debt problems
Those on unemployment benefits most likely to have debt problems
- Monday, 6 September 2010Large numbers of consumers claiming jobseeker's allowance (JSA) are living with
debt problems, amounting to thousands of pounds.
That is according to the Consumer Credit Counselling Service, which has found that the proportion of people living with
debt problems claiming JSA is three times higher than in the general population.
One of the main reasons that people claiming JSA are struggling to pay off their debt is unemployment, as 22.4 per cent of those contacting the firm stated this as the reason for their money troubles.
A typical person claiming JSA has unsecured debts amounting to £15,412, which would take four and a half years to pay off if the consumer put all their benefit money towards clearing it.
Malcolm Hurlston, chairman of the charity, said: "Unemployment can devastate the finances of any family and our experience shows that once somebody with few financial options is forced to take out a loan to cover living costs they are often then trapped in debt for years to come."
The Citizen's Advice Bureau recently announced that the number of people making enquiries about financial burdens had declined for the first time in two years in the second quarter of the year.

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