Scotland is home to the highest number of payday loan debtors
December 30, 2013
Despite the Government’s recent plans to cap payday loans, it could be too late for many unable to repay spiralling loan charges.
Recent statistics from debt charity StepChange revealed that Scotland has the highest number of people in debt to payday lenders. Citizens Advice Bureau (CAB) Scotland admitted to seeing over 100 cases per week of people struggling to repay payday loans.
Policy manager for CAB Scotland Keith Dryburgh, said that payday loans were one of the “main issues” seen at CAB Scotland and suggested the payday lenders were to blame. He said: “Having asked many of our clients how they have got into these difficulties, we’ve found that many payday lenders operate in ways that ensure people will get into debt they can’t handle. Some lenders routinely target low-income groups, mislead about their charges, impose massive interest rates and then employ drastic efforts to recover the debt.”
Investigations into the payday loan industry were carried out in a recent BBC documentary and revealed that although many people take out a payday loan as a last resort when they are desperate to make ends meet, some simply use the cash for non-essential luxuries such as nights out and clothes. The documentary also raised questions about whether the efforts made to control payday lenders are enough.
Mr Dryburgh added: “The industry had promised to clean up its act, but our evidence is that lenders are still operating in ways that are bound to hurt vulnerable people and trap them in long term debt.”
If you’re in debt to a payday lender and the charges are spiralling out of control, why not speak to one of our experienced debt advisers at Scotland Debt Solutions? Our knowledgeable team can offer you expert advice based on your individual situation and we’ll do our best to get you finances back on track.
When taking out a joint loan, there are many things you need to consider. Signing up to a joint credit agreement is a huge commitment and it’s important to ensure you have all the facts before signing on the dotted line. While no one wants to think about a relationship breaking down, the truth is […]
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 […]
A trust deed is a common debt repayment programme based around a voluntary arrangement made between you, your creditors and a qualified independent trustee who takes control of your debt repayments for a typical period of four years. If you’re having difficulty paying your debts and have assets or a regular income, you may qualify […]
If you have built up debt from gambling, you may be able to write off part or all of the debt via a formal Scottish insolvency route. Not all insolvency solutions allow debts to be written off, but you may be eligible for a trust deed if you meet certain criteria, with sequestration also being a possibility […]
Her Majesty’s Revenues and Customs (HMRC) is one of the biggest creditors in Scotland, and indeed across the rest of the UK. Millions of people make payments to the government through HMRC in the form of income taxes, National Insurance and VAT every year. For the majority of people in employment, this is done automatically […]
Council tax is a charge levied on residential property and payable to the local council. While some properties are exempt from paying council tax, most households must factor this bill into their monthly budget. Households will be given a yearly charge which can then be broken down into a series of monthly instalments throughout the […]