Consumers 'risking debt problems through lack of protection'

Many consumers in the UK are potentially risking debt problems by failing to secure adequate insurance.

This is according to Scottish Provident, which suggested that most people find it difficult to accept that they may face redundancy or a serious illness which prevents them from working.

Head of marketing at the firm Susan Barclay said that consumers do not wish to think of such things happening to them.

She added: "Despite some very high-profile cases of critical illness in the media and news of mass redundancies nearly every day, people in Britain still think that 'it' will never happen to them."

According to the expert, securing cover is an "essential" part of financial planning and people need to make sure they have a plan in place and sufficient insurance so that they do not run into financial problems if their life situation changes.

Recently, David Kuo, director of Fool.co.uk, suggested that the rising level of unemployment in the UK is to lead to an increase in debt problems.