One third of Scots borrowing to get by
In Scotland, almost 700,000 people have run up credit card balances of as much as £30,000, according to the latest Scottish Household Survey 2009/2010 Annual Report published last week.
As they try to cope with the rising cost of living, many people have been borrowing just to get by.
The Survey showed that a third of Scottish residents are turning to credit cards because they don’t have any savings in the bank to see them through tough times, while 12% are ‘struggling to survive’ on the money they have coming in.
James Falla, senior debt expert at Beat My Debt was unsurprised by the findings. “Many people are struggling in the current economic conditions and Scotland is no exception. Where they are running out of money before the end of the month, a natural reaction is to try and borrow more money” he said.
A third of Scotts with credit cards owe at least £30,000
Throughout Scotland, there are 4.1 million people eligible for credit cards and loans – and 2.7 million of them currently owe money on everything from student loans and credit cards to hire purchase (HP) agreements and loans.
Around a third of the people who have credit cards have a balance of £30,000 or more to repay. In all, over a million people are in a ‘spiral of unmanageable debt’ – and according to insolvency trade body R3, the average debt in Scotland is actually £20,000.
James Falla advised anyone struggling with debt to take expert advice. “There are a number of debt solutions specific to Scotland that do not involve extra borrowing such as a Trust Deed which can be used to resolve a personal debt problem” he advised.
Arrange a call with a Trust Deed Expert
Your information will be held in strictest confidence and used to contact you by our internal team only. We will never share your details with any third party without your permission.