Austerity Blamed As More Scots Turn to Debt Solutions
July 27, 2017
Government policies and austerity measures have been blamed in part for forcing more and more Scots into the position of requiring debt solutions.
Paul Wheelhouse, who is a Scottish parliament member and minister for business, innovation and energy, has pinpointed austerity policies as a source of financial problems for many indebted consumers across the country.
“There is no question that continuing austerity has led to incomes being squeezed and more people suffering the anxiety and distress of insolvency as a result,” he said in a statement.
Mr Wheelhouse’s comments came after official figures on the various debt solutions available to Scots in financial difficulty were announced by the Accountant in Bankruptcy (AiB).
The AiB’s numbers show a 17.3 per cent increase in awards of bankruptcy and protected trust deeds across Scotland between the second three months of this year as compared with the same period in 2016.
The number of Scots entering into protect trust deed arrangements rose particularly sharply and by 22.8 per cent on a year-to-year basis, according to the AiB.
Meanwhile, the number of people who entered into government-backed Debt Arrangement Schemes increased by almost 17 per cent between the April-to-June period of 2016 and the same period of this year.
Despite an evident growth in the number of Scots turning to debt solutions in recent months, the scale at which bankruptcies are being counted is currently regarded as being low by historic standards.
“The longer term trend of people accessing statutory debt relief and debt management solutions is a declining one and numbers of people falling into insolvency are around half of the levels reported at the turn of the decade,” Paul Wheelhouse noted in his official statements.
“The Scottish Government will work tirelessly to protect those individuals facing financial hardship by working towards reducing poverty and inequalities in Scotland,” he said.
Concerns are beginning to grow in some quarters, including among some senior figures at the Bank of England, that the UK as a whole is heading towards a situation in which so many consumers are heavily indebted that it presents a risk to banks and to the wider economy.
If you live in Scotland and would like to find out more about any form of debt solution then Scotland Debt Solutions can help. Contact your nearest office to arrange a free consultation.
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 […]