Unemployment rise 'may lead to more debt trouble'
Unemployment rise 'may lead to more debt trouble'
- Thursday, 23 April 2009The UK's unemployment rate has reached its highest point since September 1997, according to Office for National Statistics data - meaning an increasing number of people could be struggling with debt.
The figures also show the number of redundancies has reached its highest figure since comparable records were first compiled in 1995.
In the three months leading up to February 2009, the unemployment rate was 6.7 per cent - up 1.5 per cent over the same period a year ago.
During the same three-month period, the redundancies level in the UK was 73.8 per cent, an increase of162,000 over the year.
According to debt charity Credit Action, during the three months ending January 2009, some 2,915 people reported they had been made redundant every day.
Figures from the group indicated that one person is declared insolvent or bankrupt every 4.5 minutes and it projected that one person could enter into an individual voluntary arrangement (IVA) or declare bankruptcy every 3.3 minutes by the end of 2009 due to debt difficulties.

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