Contractors and other professionals should prepare for financial shifts, even if their job is secure, an expert has revealed.

David Rodger, managing director of Debt Advice Foundation, said that planning ahead is essential as redundancy can have a devastating effect on a household.

He advises that workers should avoid overstretching their finances, not committing themselves to large amounts of credit, keeping to a budget and saving up money wherever possible.

His comments followed a study by the Money Advice Trust which said that the upcoming rise in unemployment would see debt advice demand rocket.

Mr Rodgers added: "This new research highlights that a worryingly low proportion of people – just one in six - actually seek advice when they are struggling with debts. Many individuals can feel that there is a stigma associated with admitting to financial hardship or are unsure who to turn to for help."

According to the Savings Brake report from unbiased.co.uk, saving levels are on the increase but debt repayments have dropped.