20% of people worry about losing their jobs
15th February 2011
The results of a recent survey carried out by the CIPD (Chartered Institute for Personnel and Development) have painted a bleak picture of UK workplace security.
20% of workers have admitted to being fearful that their jobs will be lost, with the figure rising to 33% for public sector workers. The added anxiety amongst public sector employees is of extra concern in Scotland, where a higher proportion of workers are employed in this sector than in most other parts of the UK.
More than 50% of respondents to the survey have had their salary frozen or cut by their employers. Around 30% said that their standard of living had worsened recently, with just one in ten saying things were getting better.
These statistics suggest that the number of trust deeds in Scotland is likely to grow during 2011.
Loss of employment is a key driver of Scottish trust deed numbers. When redundancy payments are spent many people find it impossible to manage on income benefit alone. The deficit in some cases will be funded by the use of credit, which will increasingly involve the use of high cost variety such as payday loans.
The risk is still not abated when people are able to obtain new work quickly. In many instances individuals are compelled to accept employment on less generous terms than their previous position. If they already have debt commitments this can result in a mismatch between income and expenditure. In the long-run, if not addressed, this can only result in escalating debt levels, increasing the need for a debt solution such as a protected trust deed to help manage debt repayments.
Even where jobs are secure, the high rate of inflation is reducing the amount of disposable income individuals are left with once essential expenditure has been taken care of. This creates a mismatch between income and expenditure, which must be addressed quickly to prevent the development of financial issues further down the line.
A protected trust deed is just one of the measures available to Scottish residents to address unsecured debt repayments which they can no longer afford. Other options which may be appropriate include bankruptcy, a debt arrangement scheme or a debt management plan.
For further information regarding trust deeds, please do not hesitate to contact our friendly team, or read the articles in our forum which relate to your particular situation.
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