A recent report has revealed a worrying trend of taking on too much debt in Scotland, with Scottish consumers said to have taken on far more debt than other consumers in the UK. The data came from the quarterly personal debt report released by the insolvency trade group R3. The data showed that Scots have been taking on a variety of new debts including debts from credit cards, loans and overdrafts.
The data also showed how Scottish consumers were finding it difficult to make their money last from one payday to the next, with around 43 percent of Scots are said to be struggling to make their money last until payday. This figure is worrying but it was actually around 3 percent less than the rest of the UK.
When it came to payday loans, the R3 report showed that in the rest of the UK there had been around 2 million payday loans taken out over the past twelve months whereas in Scotland alone there had been 200,000. One fifth of Scots are said to be struggling to pay back these payday loans, whereas in the UK only one tenth of consumers said that they were struggling to pay back their loans. According to Citizen’s Advice Scotland the figures do not come as any great surprise, as it has been evident for some time that the debt problems in Scotland have been on the rise.
Tags: scottish council, council member, United Kingdom, loans, new debts, great surprise, debt cycle, Advice ScotlandR3 Scottish council member John Hall said: “It is extremely worrying that such a large percentage of people are struggling to make it to payday and that many are using payday loans to bridge the gap. These loans tend to have high interest rates and often those who use this type of credit find themselves in a vicious debt cycle, especially if they then experience a sudden job loss.”
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