Debt charity warns of widespread debt problems among retail staff
As the British Retail Consortium predicts that the rise in VAT to 20 percent will lead to the loss of retail jobs, a leading debt charity is warning of widespread debt problems among those working in the retail sector.
Consumer Credit Counselling Service (CCCS) says that mass job losses in the retail sector will leave many without the ability to repay their debts. CCCS says that this could lead to an explosion of personal insolvency in the retail profession.
The charity says that those on low incomes, the category which many working in retail fall into, are most likely to struggle to repay their debt. Households with net incomes of less than £20,000 make up the bulk of those seeking help from CCCS with many finding themselves trapped in a budget deficit, spending, on average, over £100 more than they earn each month. CCCS says that mass job losses will exacerbate debt problems among retail staff.
Delroy Corinaldi, external affairs director at CCCS says: “Mass job losses in any sector are worrying but particularly so in a sector where the average wage is quite low.
“Those on low incomes are likely to be already struggling to make ends meet and maintain their debt commitments so any reduction in income could push them into insolvency.
“I would urge anyone working in the retail sector who is worried about their debts to seek help now as the sooner they get help the more can be done to deal with their situation.”
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