The Money Advice Trust says 23% more Welsh people could be seeking debt help in 2014. That's if predictions about public sector job losses in Wales prove to be correct, reports the BBC.
MAT says 66,000 people in Wales were helped by debt advice agencies last year, but many more might need debt advice if more jobs are cut in the future. There is a great deal of speculation about future public sector job losses, as many thousands of jobs have already been cut in England and Wales, as part of the Coalition Government's austerity drive.
Financial analysts PricewaterhouseCoopers have suggested that as many as 50,000 public sector jobs could be put at risk over the next few years in Wales.
The redundancy debt spiral
Losing your job is probably one of the most stressful experiences an individual can face, and the knock-on effects can be far reaching.
You might be managing on your current income, but without sufficient savings, you might struggle to pay the mortgage or rent without borrowing if you lost a major source of income. Of course, the longer you're out of work, the more you could end up borrowing. Relying on borrowed money to get by could become a reality for thousands of public sector workers in Wales in the near future.
Debt is often the result of a change in a household's circumstances, like a reduction in its income - and the point of a debt advice organisation is that it'll find the best solution for a borrower, depending on their circumstances. For example, debt management can help people to repay debts more slowly if they can't keep up with their agreed payments anymore, but that does affect their credit record, which can make it more difficult to borrow money for six years.
Managing debt
There are steps you can take now to prepare yourself for the future - and saving is one of the most important steps. Most financial experts agree that three months' salary is a good enough safety net for most eventualities, so it's well worth putting money into savings now, in case your finances take a turn for the worse.
Dealing with any debt you have today is arguably as important as saving when it comes to planning for the future. If you're struggling with unsecured debts, you could find out whether you should consider a debt management plan with a company like http://www.gregorypennington.co.uk, the company that supplied this article. There are drawbacks to every debt solution, such as the fact that repaying debt more slowly can cost more in the long run, so you should discuss these with a debt adviser and explore all your options before you commit yourself.