Fears Raised Over Scots’ Finances After Jump in Value of Court Ordered Debt Repayments
February 11, 2016
Concerns have been raised about the ability of Scottish consumers to manage their finances and avoid serious problems relating to personal debts.
The issue has been highlighted by the Registry Trust, whose own figures show that there was a significant increase in the value of consumer debt-related court judgements made in Scotland during 2015.
According to the organisation, the overall value attached to court-ordered debt repayments throughout Scotland last year was up by 22 per cent on the previous 12 months.
In total, Scots were ordered to repay as much as £62.1 million to their creditors over the course of last year, as compared with £50.9 million in 2014, the latest figures indicate.
All of which has raised concerns that Scottish consumers might be finding it increasingly difficult to manage their finances and to make debt repayments comfortably.
The number of debt judgements registered against Scottish consumers during 2015 totalled some 21,131, which reflected a 5 per cent rise on the year before and the first annual increase in four years.
But while it seems that more and more Scots are struggling to avoid being hit with court orders in relation to their personal debts, experts have said that the problem is not so much that more debt is being taken on but that consumers are increasingly finding themselves unable to afford their repayments.
“There was a clear weakening in consumers’ ability to manage repayments last year,” explained Malcolm Hurlston, chairman of the Registry Trust in a statement. “It is time for extra caution in borrowing.”
Worryingly, the Registry Trust’s figures show that the average value of a court judgement in relation to debt racked up through credit cards, store cards, overdrafts, rent arrears and personal loans stood at £2,939 last, which is a figure up 16 per cent on the year before.
The Registry Trust operates on a non-profit basis and gathers information on all debt-related court orders issued anywhere in the British Isles or in Ireland.
If you live anywhere in Scotland and you are finding it tough to manage your personal debts then there are options available to help you. Call Scotland Debt Solutions to find out more.
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 […]