Third of Brits ‘Reliant on Debt to Make Ends Meet’

March 22, 2017

As many as one in three UK consumers consider themselves to be reliant on debt and credit to get by financially on a month to month basis.

That’s according to new figures released by the price comparison company MoneySuperMarket, which has noted a substantial rise in overall indebtedness throughout the country.

The numbers show that three-quarters of British adults now owe money to creditors outside of their mortgage lenders and the average amount owed is up to £6,372.

That average debt figure represents an increase of 5 per cent since the same time last year, with a third of people whose debts have increased of the view that the rising costs of living have been a prime cause of their added financial burdens.

On a nationwide basis there is understood to be a total of some £240 billion owed as unsecured debt by British consumers, with young adults now among those most likely to be struggling to cope with debt problems.

Inflation is currently at a two-year high of 1.8 per cent but many respondents to MoneySuperMarket’s recent polls admitted that their own spending habits were more to blame for their debt problems that the rising costs of living.

Kevin Pratt from the price comparison company behind the research has urged anyone finding it tough to cope with their unsecured debts to take simple steps towards resolving their issues.

“For example, it’s important to shop around to make sure you’re paying the lowest interest rate you can,” he said.

“It’s also worth consolidating multiple expensive debts onto a low-interest personal loan. Rates are the lowest they’ve been in years so, if you’re struggling to pay off unsecured debt, this might be an attractive option.”

Pratt added that the key to resolving debt woes is to “take a proactive approach” and to “see if you can reduce the interest you pay and make inroads into what you owe”.

“With the UK facing an uncertain economic future, households should be taking whatever steps they can to get their finances into the best shape possible,” he said.

If you live anywhere in Scotland and you’re struggling with debt problems then Scotland Debt Solutions can help. Contact any of our offices today to arrange a free and confidential consultation.

How to clear your council tax arrears with a trust deed

6th March 2018

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 […]

Read more

How to restore credit rating after Scottish debt programme has been satisfied

5th March 2018

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 […]

Read more

I’ve received a Simple Procedure Notice of Claim – what now?

4th March 2018

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 […]

Read more

What is a Bankruptcy Restriction Order? (BRO)

1st March 2018

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 […]

Read more

What does the DAS Fair and Reasonable Test entail?

28th February 2018

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 […]

Read more

How do I apply for a Debt Payment Programme (DPP)?

26th February 2018

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 […]

Read more