Payday Loan Debt Down In Fife

The number of people seeking help with payday loan repayments from a Scottish debt charity has halved this year.

At £1,114.60, the amount of high-interest loan debt is lower than the UK average of £1,305.

Around 9% of people who sought help from StepChange in North East Fife last year needed help with payday loan repayments, that figure rises to 11% in Mid Fife and Glenrothes. The government has brought in regulations to control the industry - but the loan companies say that is driving more people to illegal loan sharks.

Sharon Bell, Head of StepChange Debt Charity Scotland said:
 
"The proportion of Scottish clients with payday loans among their problem debts has fallen from 15% in 2014 to 10% now. We have also seen our clients overall payday loan debt shrinking almost 20% in the same period. In both cases, these figures are below the UK average.
 
"This is largely the impact of regulation, and is very welcome. The important and necessary steps taken by the Financial Conduct Authority are starting to clean up problems in the payday loan market but we are concerned about the affordability and sustainability of some of this lending. The payday loan market is being reformed, but the job isn’t done. We need alternatives to high cost credit that will help people get through financial difficulty.
 
"A Government review of our ‘Breathing Space’ proposals was promised earlier this year and we look forward to an announcement about the timing of this review."