Debts Higher Among People Living in Towns and Cities, Study Reveals

June 20, 2018

People in towns and cities across the UK have larger debts and are on average more likely to be using high-cost loans than their counterparts living in the countryside.

That’s according to the Financial Conduct Authority (FCA), which has carried out an extensive survey looking at the ways in which people throughout the country interact with financial services.

The industry regulator’s findings suggest that the average level of debt held by someone who lives in a town or city is roughly £3,600, compared to £2,510 for those who live in rural areas.

As many as 2.4 million people who live in urban areas are believed to be using some form of high cost credit, compared to just 600,000 people who live in the countryside or in non-urban areas.


“This survey shows just how different the experience of financial services is for consumers across the country,” said Andrew Bailey, chief executive of the FCA, in a statement.

“That’s important for us, as we shape financial services policy. But it is also important for firms, as they decide how best to serve their customers.”

Looking specifically at Scotland, the FCA’s research found that around 54 per cent of people could be considered “potentially vulnerable” from a personal financial perspective, which is 4 per cent above the UK-wide average of 50 per cent.

However, Scots were found to be more likely than most Brits to feel highly confident in their ability to manage their money, with 42 per cent of people north of the border suggesting they would put themselves in that category.

On the other hand, Scotland has a higher than average reliance on high-cost credit, with 8 per cent of Scots having resorted to high interest borrowing, compared to a UK-wide figure of 6 per cent.

Around 8 per cent of Scots are described by the FCA as being in financial difficulty, while 13 per cent are categorised as being over-indebted.

If you live anywhere in Scotland and you are finding it difficult to cope with your personal debt problems then Scotland Debt Solutions can help. Contact us to arrange a FREE and confidential consultation.

John Baird

Insolvency Adviser

Tel: 0800 063 9250

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