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.
If you’re worried that the council might take action against you for non-payment of council tax, entering into a Scottish trust deed can be a beneficial step. It stops legal action by all creditors included in the arrangement, and provides a ‘safe haven’ from which to regain control of your finances. As council tax arrears […]
A debt payment programme (DPP) remains on your credit file for six years, along with other default markers and court judgments that have been made against you. This can seriously affect your ability to borrow for this period of time, and longer. Even if you can secure borrowing, lenders are only likely to offer unfavourable […]
If you owe a debt of £5,000 or less, your creditor may send you a Simple Procedure Notice of Claim. This is a relatively new procedure that was brought in by the Scottish government and commenced on 28th November 2016 – their intention being to make it easier to resolve debt disputes. So if you’ve […]
A Bankruptcy Restriction Order may be made against you if it’s believed that you acted dishonestly, recklessly or unlawfully before you were made bankrupt, or during your bankruptcy. Your Trustee will inform the Accountant in Bankruptcy (AiB), and if their suspicions are upheld, a BRO of 2-15 years can be made depending on the seriousness […]
Debt payment programmes (DPPs) are an intrinsic part of the Debt Arrangement Scheme, which allows you to pay off unsecured debt at an affordable rate. If a debt payment programme is rejected by one or more creditors, the DAS Administrator can apply their discretion on whether to approve the plan, after using a test to […]
If you’re struggling to pay your unsecured debts, a debt payment programme could help you to regain control of the situation, and become financially stable again. Debt payment programmes are a fundamental part of the Debt Arrangement Scheme (DAS) in Scotland, and allow you to repay over a longer period of time. These programmes involve […]