Debt report banner

Scale of Personal Debt Problems ‘Must Not be Overlooked by Policymakers’

  • Sharon McDougall -
  • 2nd July 2021 -
  • 2 minutes to read

The extent to which individuals and households across the UK are struggling with debt issues must not go overlooked by policymakers either within government or at the Bank of England.

That’s according to the debt help charity StepChange, which has sought to emphasise the point that while some people have seen their financial situations improving during the pandemic, many others are grappling with increasingly serious debt problems.

Peter Tutton, head of policy, research and public affairs at StepChange, has said that from a personal finance and household income perspective there has clearly been a “two-speed impact of the pandemic”.

“There are millions of households on low incomes living on the brink of being unable to make ends meet, or already in problem debt, and for many of these, debt problems have got worse rather than better,” Mr Tutton has said.

“It’s vital that public policy doesn’t leave people behind and does focus on getting much-needed support to people who continue to be impacted by Covid-related debt.”

Mr Tutton’s comments came in response to the publication of official data by the Bank of England, which shows a return to net borrowing across the UK’s consumer population as a whole.

For the past eight months there has been a net reduction in the scale of consumer borrowing but that trend was attributed to fewer people taking on new debt rather than because borrowers in general have been better able to make repayments.

StepChange has been making the point repeatedly in recent months that there are clearly a very large number of people in the UK borrowing more money to make ends meet in response to a reduction in their incomes.

In fact, the charity’s own figures suggest that roughly 6.3 million people have needed to borrow money since the pandemic started because their income declined.

The most common form of debt about which StepChange clients contacted the charity for advice in recent months was credit card debt, while one in 10 cited Covid-19 as the underlying reason why they’ve recently found themselves in problem debt.

If you live anywhere in Scotland and you are worried about how best to deal with your personal debt problems then Scotland Debt Solutions can help. Contact us directly to arrange a FREE and confidential consultation.

Sharon McDougall
Sharon McDougall
Manager
About

Why Choose Us

5 Offices in Scotland
5 Offices in Scotland
National Coverage
Ask us About
Ask us About
Free Home Visits
Helping Scots Get
Helping Scots Get
Out of Debt Since 1989
We offer a
We offer a
Free Initial Consultation
We'll Help You
We'll Help You
Lower Monthly Payments
You'll Get
You'll Get
Peace of Mind

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

When should we call?
Can we leave a message?
Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.
Tools

Useful tools

Personalised Debt Report

Personalised Debt Report

Our personalised debt report will help you better understand your financial position and see where your money is going.

Free Scheduled Call

Free Scheduled Call

 Arrange a call with an expert advisor at a time to suit you.

Find a Local Office

Find a Local Office

We have five offices located across Scotland. Find your nearest one here.

Close Menu Share with a Friend

Send this page to a friend

via Whatsapp via Messenger via Messenger via Email
Make sure you have WhatsApp installed.

Copy link to clipboard
Close
Edit this Page

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY