Poorest Households Spending a Third of Monthly Incomes on Debt Repayments
February 1, 2019
Impoverished households across the UK typically spend just over a third of their monthly income on debt repayments.
That’s according to analysis done by Sky News, which has been delving into the details of the latest personal finance data to get a better picture of how debt is impacting people’s lives in different parts of the UK.
More than half of adults across the country have some form of outstanding debt but a sizable minority have now become reliant on debt to cover even their most essential of expenses.
Analysts have pointed out as well that the issue of being overburdened with debt is not only a problem for people on benefits, with a great many people in work also having real trouble making ends meet and keeping their creditors at bay.
A major part of the problem is that so many people are now needing to borrow money in order to cover their essential expenses, which can very easily lead to a spiral of debt that then becomes increasingly difficult to escape.
Many households with low incomes also find it very difficult or impossible to access credit that doesn’t come with high levels of interest attached.
According to Sky News, this has led to a situation in which more and more people who are impoverished turn to doorstep loans or loan sharks, with the early weeks of each new year a particularly busy time for providers of these services.
Interest rates on loans provided under these circumstances can often be as high as 500 per cent or more, with women understood to be using these services more often than men.
Loan sharks often operate in a way that sees customers end up paying thousands of pounds in interest in relation to much smaller sums of money they borrow at a moment of desperation.
If you live anywhere in Scotland and you’re worried about your debts or how you will fend off your creditors then Scotland Debt Solutions can help. You can contact us any time to arrange a FREE initial consultation.