Council Tax Now Britain’s Leading Source of Debt Problems
September 8, 2015
Council tax arrears is now the leading source of debt management problems among consumers throughout the UK, according to Citizens Advice.
The charity reports that 12 per cent of people who turn to its advisors for help are worried primarily about the debts they owe as council tax, with tens of thousands of individuals around the country now struggling to cope with their council tax arrears.
Until recently, issues with credit card debts, store cards or personal loans were more likely causes of debt problems for British people but council tax has jumped to the top of the nation’s debt-related worry list.
The concern for Citizens Advice, as a charity that aims to help people who are facing financial distress, is that personal finance problems are increasingly being caused by an inability to cover everyday expenses.
As well as their council taxes, more and more people around the UK are apparently struggling to pay off energy bills, fuel debts and rent arrears.
“Citizens Advice has seen a shift in the kind of debt people have now compared to five years ago,” explained Pippa Lane, senior policy researcher at Citizens Advice, in a recent blog on the subject.
“People are increasingly struggling to pay their basic costs of living, and falling into debt as a result.”
Citizens Advice also reports that young people throughout the UK are taking on increasingly large amounts of debt, with individuals aged between 15 and 24 now carrying more debt on average than ever before, even when student loans are discounted.
Other findings from the charity’s latest assessment of its own figures suggest that self-employed people have the highest average debt levels of any professionals in the UK, while lone parents with dependent children are more likely than most to be struggling with debt.
Perhaps unsurprisingly, research has suggested that debt problems are a common cause of mental health complaints among British consumers, with 73 per cent of people who reach out to Citizens Advice for this reason having felt either stressed, depressed or anxious as a result of their problems.
If you are struggling to cope with debts of any kind and you want to speak to an expert about your options then call Scotland Debt Solutions now to find out how we can help.
Your personal credit score plays an important part in securing new loans and credit, and can affect your financial life for better or worse. Lenders use the information in your credit file to determine whether you present a high risk of default, and if your credit score is low, you may find it difficult to […]
Credit unions offer a range of financial products including current accounts, savings accounts, and loans, and can be a good alternative to banks and building societies whilst also helping your cash flow. There are credit unions all around the UK, almost 100 of them operating in Scotland. They’re not always widely advertised, however, and although […]
It’s a worrying situation when you realise your outgoings exceed your income, and it can be difficult to prevent debt in this situation, but there are solid steps you can take to get back on track – you just need to act quickly. Increasing your income or reducing the money going out are essentially what […]
If you’ve lost your job, state benefits and tax credits can provide vital financial support to see you through this tough time and help you avoid taking on too much debt while you look for more work. As far as your old employment is concerned, it’s important that you check your final wage slip to […]
If you are a Scottish resident in financial difficulty, you may have entered into a Trust Deed in order to restructure debt repayments to creditors. A Trust Deed is a fixed voluntary agreement made between the debtor and creditor, with the help of a trustee. Debt is broken down into smaller, affordable instalments, typically lasting […]
A Debt Arrangement Scheme (DAS) is a government backed scheme which allows you to repay debt through contractual, monthly instalments without the threat of legal action and incurring penalties or interest. The scheme was established in 2004 for Scottish residents in debt, providing an alternative solution to sequestration, the Scottish equivalent of bankruptcy. A Debt […]