Unstable working hours ‘can lead to money issues’
Households up and down the country run the risk of building significant debts as a result of unstable working hours, new figures from the Debt Advisor…
Households up and down the country run the risk of building significant debts as a result of unstable working hours, new figures from the Debt Advisory Centre (DAC) have revealed.
According to the organisation's research, two-thirds (64 per cent) of individuals with fluctuating income levels from week to week have admitted that sometimes they face difficulties in meeting their essential commitments, such as household bills.
The DAC's figures show that across the UK, approximately one in 20 people (3.7 per cent) are now working on zero hours contracts or other similar flexible temporary terms.
In addition, 5.6 per cent of the population are in this position as a result of being self-employed, while bonuses and overtime payments were shown to have an impact on take-home pay for 9.6 per cent of people.
Each of these groups were shown to have a higher risk than the general population when it came to their ability to meet their essential financial obligations, with more than one in ten (14 per cent) revealing they often find themselves in this situation.
Spokesman for DAC Ian Williams commented: "More people are self-employed or on zero hours contracts than ever before and our research shows that many are struggling to cope with the financial implications of an income that varies from month to month.
"Wages that go up and down each payday make budgeting incredibly difficult and in some cases could even lead to debt problems."
However, Mr Williams argued that whatever the reason for people facing concerns over their finances, the best thing they can often do is to seek help.
Indeed, anyone facing mounting debt problems should consider contacting a professional financial adviser, who could highlight the best course of action to help them to get their finances back on track.
Here, the pros and cons of measures ranging from the use of individual voluntary arrangements to debt consolidation and, in extreme cases, bankruptcy can all be discussed.
Posted by James Francis
