Scots Living In Debt

Scotland has highest value of Council Tax arrears and Pay Day loan debts in the UK, according to among StepChange Debt Charity.

Of the Scottish clients who came to the charity in the first six months of 2014, 39 percent were in arrears on their Council Tax bill, an increase of 20 percent since 2010. On average, those who had fallen behind owed £1,534 – almost double the UK average of £798. 
 
Payday loans are still a problem for Scots. The average payday loan debt of Scottish clients in the six months to June 2014 was £1,438, the largest of the UK nations, and £129 more than the UK client average.
 
The findings come as the charity launches its 'Scotland in the Red' report, an annual analysis of debts held by clients of the charity in Scotland. Other areas for concern highlighted by the report include the increasing numbers of people falling behind on essential household bills. In 2013, Scottish clients had the largest amount of gas bill arrears (£539) and in the first six months of 2014, the largest amount of electricity arrears (£616), of all the UK nations.
 
Sharon Bell, head of StepChange Debt Charity Scotland, said: 

"The rise in people struggling to pay their priority bills is a stark reminder of just how difficult day-to-day living has become for many Scottish households. Keeping a roof over your head and heating your home are basic needs, yet for too many Scottish families, these are constant worries in the run up to Christmas.  Even where families are not in debt, many live on a financial knife-edge with small setbacks enough to tip them over the edge into problem debt.
 
"We continue to see worrying levels of payday loan debt which are making a bad situation worse for too many Scots. Toxic high cost credit is being used as an emergency safety net and we need to find more sustainable ways to help people cope.

"Anyone who feels they are struggling should seek free impartial debt advice from an organisation like StepChange Debt Charity as early as possible to prevent the problem worsening."