Cost of living forces consumers to borrow as lending continues to rise
September 30, 2013
Amid reports that the economy is finally improving, many ordinary families in the UK are still facing an everyday struggle with the cost of living.
In recent months both unemployment and the housing market have begun to show recovery, however, recent statistics from the Bank of England suggest that consumer lending is still rising, and in July, borrowing on personal loans, credit cards and overdrafts increased at its fastest rate since 2008.
Consumer credit increased from £400m to £600m from June to July this year and according to reports, the majority of this stems from loans and overdrafts.
Shadow employment minister Stephen Timms described the situation as a “living standards crisis” and said that life for families had actually become more difficult despite the recent upturn. So if you’re concerned that your borrowing habits could be out of control, you’re not alone.
Our team at Scotland Debt Solutions specialise in debt management and would be happy to look at your individual situation and get your spending out of the red.
Although cutting out luxury purchases such as holidays abroad or a new car can help reduce some spending, the cost of food rose by 4.4 per cent in the last year, four times the average wage increase for the same period. For families already under pressure in a tough economy, it’s no surprise that you may have turned to savings, credit cards and personal loans to make ends meet.
Here at Scotland Debt Solutions, we can offer you impartial debt advice from our experts to ensure you are in the best position to take the necessary steps to becoming debt free.
Debt solutions in Scotland, such as the Debt Arrangement Scheme (DAS), trust deeds and Low Income Low Asset (LILA), are just a few of the options which may be available to you. So why not call us today and our knowledgeable advisers will help you get your finances back on track.
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