With the UK suffering a bad year economically last year and the prospects of a second recession looming in the very near future, unemployment figures are increasing at an alarming rate, leaving many individuals in danger of falling behind with their personal loan and other debt repayments.

The unemployment rate in the UK has increased from 8.3 per cent to 8.4 per cent, which is the highest level since 1996, according to the Office of National Statistics (ONS).The total unemployment figure in the UK now stands at 2.685 million people, an increase of 18,000 over the course of the three months to November last year.

With personal debt levels on things like unsecured loans and credit cards at an all time high, many people who are currently unemployed, or face the prospect of losing their job, will be unable to manage their loan repayments on a regular basis, as many are already struggling to stay on top of their loan debts even with a full salary coming in.

Those people who took out some form of loan protection in the event of unemployment, could have their loan repayments covered for a limited period, but many borrowers have simply not bothered taking out this type of cover, either due to the recent bad press surrounding such policies, or on the grounds of keeping their loan costs as low as possible.

This is a particular problem for young people between the ages of 16 and 24, as almost a quarter of this group are unemployed, whilst this same group has some of the highest loan and credit card debt across all age groups, based on a percentage of earnings.

For those facing unemployment and problems with their personal loans and other debts, it is important to seek professional help and advice as soon as possible in order to try and avoid serious loan arrears and a bad credit rating.