Average Household Debt in Scotland ‘Up 65% Since 2008’
February 26, 2016
The average amount of debt held by individual households across Scotland has increased by as much as 65 per cent since 2008, according to a new report looking at the state of the nation’s financial wellbeing over the past decade.
In 2008, the debt level of a typical Scottish household apparently stood at £2,200 but had risen to a level of £4,000 per household by the early weeks of 2016.
The research and report were compiled by the Scotland Institute, with its other findings suggesting that every income group in Scotland saw a decline in their real incomes between 2008 and 2012.
Families with children apparently saw the sharpest fall in the value of their incomes during that period, with those who were already deemed poor also those who saw the most significant rise in the percentage of their outgoings that went towards essential costs of living.
According to the Scotland Institute’s figures, while there has been something of a recovery for Scottish households in terms of their annual income levels since 2012, this change in real terms has been “marginal” and has “failed to keep pace with inflation”.
“Not surprisingly this prolonged squeeze on household incomes has been matched by a steady build up of household debt,” the report said.
“In 2006, median household debt in Scotland was £2,200, even in 2010 it was only £2,300 but in 2012 it reached £3,500.”
As many as 52 per cent of the people polled across Scotland for the report said that they consider their personal debts to be a burden.
The Scotland Institute’s report also suggests that much of the debt burdens that Scottish households currently carry relates to “the regular costs of living” and not so much to the costs associated with housing as is more commonly the case in other parts of the UK.
“As with the rest of the UK, Scottish households have become more burdened with debt as a result of falling real wages,” the report said.
“For many in Scotland, debt has become normal, being used not just for long term purchases but also to offset short term income fluctuations.”
If you are struggling to retain control of your personal or household debts then there are solutions available that can help you. Call Scotland Debt Solutions directly to find out more.
The start of a new year is the perfect time to take stock of your finances and put plans in place for a financially savvy year ahead. While you may feel your problems are insurmountable, there are always things you can do to help, most of them surprisingly easy. Here are 7 ways you can […]
If you have credit card debt which is attracting a high level of interest, moving this balance onto a lower interest card could save you a considerable amount of money. This process is known as a ‘balance transfer’, and if done correctly, this process could save you money and also reduce the time it takes […]
Many thousands of young Brits are being actively encouraged towards taking on debt and spending borrowed money even before they reach their 18th birthdays. That’s according to the price comparison website comparethemarket.com, whose research suggests that roughly one in four 16 and 17 year olds in the UK have been offered credit cards or asked […]
If you’re in serious debt with no hope of repaying your unsecured creditors, you don’t have to wait for a creditor to take legal action against you. You may be able to take matters into your own hands and apply for sequestration (bankruptcy in Scotland). This also prevents your situation from worsening. There are two […]
If you’re looking to save some money it’s a good idea to make a detailed budget that lets you see where your cash is currently being spent, and offers an overall view of your finances. You’ll need to collect together your income and expenditure details, including annual costs such as insurance, car expenses, birthdays and […]
Scotland has a number of formal debt solutions that can help you deal with a difficult financial situation. It’s advisable to take action as soon as possible, however, to prevent your levels of debt escalating when interest and other charges are added. Obtaining professional advice is key in this respect. An approved money advisor or […]