UK Households on Brink of Bad Credit Future as Workless Numbers Increase to Almost Four Million

Oct. 13, 2010 - PRLog -- Over the past year official government figures have shown a huge increase in the number of UK households which have no adults in work.

The Office of National Statistics (ONS) reported that there were now a total of 3.9 million UK households with no employed adults, a rise of 148,000 on the previous year.

“These statistics highlight the alarming problem which the new administration has been left with” said a spokesperson for Bad Credit Loans 4 You, http://www.bad-credit-loans-4-you.co.uk  a UK specialist in sourcing bad credit loans, “they are set with an enormous task to try and ensure these households don’t suffer with bad credit problems”.

The report also uncovered that around 1.9 million children lived in workless households, a startling warning for the future of the UK which shows how badly the current system is failing families.

Some parts of the UK are suffering more than others, with one-in-four households in the North East of England having no working adults, closely followed by London and Wales at 22.9%.

The South East of England currently has the lowest number of workless households at 14.2%.

These figures have been released at a time when banks and building societies are being forced to write-off around £40million of debt each day including bad credit loans, the largest amount since records began.

“Families are being overwhelmed by bad credit debts they can never afford to repay, especially with the number of those unemployed increasing”.

£2.1billion of bad credit card debt was written-off between April and June this year, plus £1.2billion from overdrafts, hire purchase agreements and bad credit loans.

Surprisingly only £184million was written-off in this period because of bad credit mortgages, this comparatively small figure is being attributed to the Bank of England keeping the base rate at an all time low of 0.5%.

“These figures clearly prove that although the recession is said to be over, its impact is only now beginning to emerge as unemployment continues to rise whilst pay remains frozen”.

Some experts have predicted that around 140,000 people will made insolvent this year, which is not just because of the 800,000 job losses since 2008.

“Although unemployment is causing many to suffer with very bad credit problems, those who have lost an extra shift or have had overtime cut are also finding their income is no longer covering their monthly outgoings”.

In an attempt to increase the number of working households and help those with bad credit the government is pushing ahead with its Work Programme.

“The Work Programme should give those who are out of work and need a job the right support to help them get into employment”.

It is structured to offer personalised support for people on a range of benefits including Jobseeker's Allowance, Income Support, Incapacity Benefits and Employment and Support Allowance.

Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading. The company is also covered by the Financial Ombudsman.

Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.

For help, phone 0800 011 4503 or visit
http://www.bad-credit-loans-4-you.co.uk

Notes for Editor:

http://www.bad-credit-loans-4-you.co.uk

Loans 4 You of London Ltd
Innovation Centre
Monks Brook
PO30 5WB
United Kingdom
Tel: 0800 011 4503

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