Debt problems may worsen as redundancies ‘running at nearly 1,800 a day’

New figures have shown 1,775 people are being made redundant in the UK every day, new data from Credit Action has revealed.

Such a situation could have a significant impact on the ability of many people to pay their debts, with the loss of income stopping many from being able to keep up payments on their mortgages, loans or credit cards.

These problems may be made worse by the fact that getting a new job is difficult for many, with Credit Action's figures indicating 849,000 or the 2.51 million currently out of a job have been in such a situation for over 12 months.

And people who do manage to get a new job may do so with less pay, meaning it will still be harder to make ends meet and fulfil their repayment obligations.

Those who are unable to make payments may find a debt management plan helps, as it can aid them to make the most of the money they have and come to an agreement with their creditors that does not involve insolvency of any kind.

More redundancies are set to hit British workers, with this week seeing defence and aerospace manufacturer BAE Systems announcing nearly 3,000 jobs are to go.

Chief executive of the firm Ian King noted production of the Eurofighter Typhoon is being slowed and orders from the US for F-35 parts have fallen, both because of pressure on government defence budgets.

"To ensure we remain competitive, both in the UK and internationally, we need to reduce the overall costs of our businesses in-line with our reduced workload," he stated.

While the losses will hit locations around the UK, the largest number of redundancies will be at the firm's plants in Lancashire and Yorkshire.

By Joe White