Scottish owe 10% more to payday lenders than rest of UK

Families in Scotland are struggling even more that others in the UK. They owe about 10% more on payday loans, or about £130 per person, than others in Britain. Not only that, but the average amount they are in rent arrears is £665 and they also owe over £600 on their fuel bills. This does not even mention the council tax problems. When adding all of this together, the average family Scottish family is not as well off as others in Britain when it comes to their debts.

Consumers across Scotland are the furthest in debt to payday lenders of anyone. This is per data from StepChange, and this is a major concern. The results of the data from the charity show that people are often turning to these lenders due to monthly bills they are struggling to pay, which is mainly their council tax, rent, or fuel bills. About 40 per cent of the loans were being issued to pay the tax costs along.

That particular expense is a major problem in Scotland. Scots owe about £1,534 on their council tax, and this is much more than the £800 due across the rest of the UK. StepChange shows that too many people feel they have no other alternatives available to them, so they are going into an extreme amount of debt as a last resort.

While hundreds of people are seeking advice from StepChange each month, many others do not. They may be too embarrassed of their financial situation, or there is something else holding them back. This is too bad, as the support from the charity has been show to help.

These families that owe money, whether it is to a payday lender or fuel provider, or on the edge. If they have one small set back, or a major disaster such as a job loss, then they will be pushed over the edge into an abyss. They will never have a change to repay the over £1,450 due on their payday loan financing. If they have a crisis, they will not be able to have their financial problems addressed, as they are just so far behind.

So staff from StepChange or partners such as Trust Deed Scotland are there to help Scottish families find ways to cope and make it through a difficult period. Most of the advice provided by these charities is free.

Staff are well trained to explore all potential solutions, including the The Debt Arrangement Scheme in Scotland. If a family really needs money, then StepChange may be able to help them access a lower cost loan from a Credit Union, or even better enter into payment plans. So consumers do have options available to them when it comes to dealing with these lenders, and the information is available at no cost. It can also be obtained by phone or in person. It is always confidential.