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Rising unemployment means 'more financial hardship'

More than 185,000 unemployed people in the UK could be facing 'financial hardship' and debt problems, research from the Money Advice Trust (MAT) indicates.

In particular, of the nearly one million 16-24-year-olds who are currently unemployed, 7.2% - over 70,000 - 'will be facing severe financial hardship'.

The research follows figures released by the Office for National Statistics (ONS) earlier this week, which painted a concerning picture of rising rates of unemployment. Between June and August 2011, the total number of people officially out of work rose to 2.57 million - an increase on 2.51 million recorded in the three months to the end of July.

Furthermore, the number of jobless under-25s rose to 991,000 in the same period - increasing from 973,000.

The findings have led to worries that people repaying debts who find themselves out of a job could fall into serious debt problems.

A spokesperson for the IVA Advisory Centre commented: "Being out of work is a common cause of debt problems for many people. Those who were previously repaying their debts relatively comfortably could find they struggle to make their repayments while they're out of work. For anyone in that position, it's important to get professional advice as soon as possible to find the best way of getting back on top of your debts."