Latest reports have revealed that loss of income is still the number one reason for debt problems in the UK.
Between March 1 2010 and September 20 2010, 4,600 cases were investigated and results showed that in 34% of the cases 'loss of income' was stated as the reason for their fall into debt. This includes reduction of working hours, reduced bonuses, pay cuts as well as redundancy.
The second biggest reason cited was 'debt spiral'. This is where juggling credit card debts, along with other outgoing payments, simply becomes too much for people and they find themselves in a 'spiral of debt'.
Further debt reasons included divorce/separation (9%), mental or physical illness (6%), unemployment (5%), the birth of a child (2%), retirement (1%), bereavement (1%) and increased expenditure (1%).
If you are experiencing debt problems then contact us as soon as possible on freephone 0800 988 7701 and let us help you get debt free.
