Research by one leading Scottish charity has revealed a worrying insight into ordinary people and their financial struggles in Scotland.
A study of 2,000 people found that by the end of the month, 25% of them nearly always find themselves borrowing money to cover their day-to-day spending.
A further 20% of these people involved in the survey ‘sometimes’ found that they also needed to turn to overdraft, short term loans and credit cards before payday arrived.
The number of people struggling to cope on their current income is growing. The idea of saving ‘extra’ money is ‘laughable’ to many Scots and 30% would find it impossible to save even £20 a month.
Important outgoings such as dental treatment, pension contributions and house maintenance are all increasingly out of the reach of many Scottish people.
Emotional impact of financial hardship
The mental and emotional impact of financial hardship is well known. The people involved in the study all reported feeling anxious and depressed about their situation.
The far-reaching effects of poor mental health through being on a low income should not be underestimated. The cost to the NHS, to businesses paying sick pay and to family life and the community all needed to be factored into the reason for solutions.
The charity’s head has acknowledged that his organisation is used to helping their customers with money and debt but they are perturbed by the increases in demand.
Food banks in Scotland have also reported a spike in the number of food parcels they are giving out, 200% more in the last five years. Between April 2018 and March 2019 over 210,000 crises supplies were given to people experiencing financial meltdown.
Debt problems being seen in Scotland
There is no quick fix solution for the debt problems being seen in Scotland. Increasing the minimum wage, making it easy for people such as single mothers to get back to work and strict budgeting will all play a part.
Debt, interest and late payment fees will only make the situation worse and your monthly outgoings will increase. Don’t ignore the problem or avoid it out of embarrassment. The sooner you act the sooner your income can be spent on the essentials and eventually a few treats.
Scotland’s Trust Deed have years of experience with helping the people of Scotland deal with debt and financial problems. If you find yourself in trouble after borrowing the money to pay for food and utility bills, then we can help – and these are our helpful debt tips:
- Be honest about how much you owe and to who
- Work out where savings can be made and implement those new rules
- Scotland’s Trust Deed can help you identify your priority debts
- Discuss with us how much of your debts you can afford to pay back.
We’ll then work together to negotiate with your creditors and set you on an affordable path to financial freedom and peace of mind.
For more help, call the team of friendly debt advisors on 0141 297 1178.