Debt repayment concerns for one quarter of Scottish households
December 8, 2014
Amid reports that a number of Scottish residents will turn to credit to afford the cost of gifts and entertaining over the Christmas period, the most recent consumer credit survey from multinational professional services firm, PwC, has revealed that one quarter of Scottish households are already concerned about how they will repay their debts.
Although the economic outlook has become brighter in recent months, PwC argues that this has failed to have a positive effect on credit confidence and many people are reluctant to take on further debt.
Findings from the report show that 13% of respondents were concerned about their job security, with one third expecting a pay freeze or decrease during the next year. However, in contrast, the survey saw the highest proportion of respondents intending to save more since the financial crisis began (41%).
Edinburgh-based banking leader for PwC, Steve Davies, said: “Having enjoyed the benefits of more than a decade of growth, then navigated the financial crisis and its immediate aftermath, the Scottish consumer credit and retail banking market is now entering a new and very different era.
“Even with the better economic outlook, relatively high levels of existing debt and the continued reduction in real incomes are leaving people cautious about further borrowing.”
Although consumers remain vulnerable to interest rate hikes, the report revealed that the number of Scottish residents using credit to pay for essentials matched the overall UK average of 13% and in the past six months, the number of people in Scotland who applied for credit was around 6%, this is 4% lower than the national average.
If you’re struggling with the repayments on your credit card or loan, why not speak to one of our specialist advisers at Scotland Debt Solutions. Our experts will be happy to advise on your individual situation and help put you in control of your finances.
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