One of the big issues for Scots who are struggling with debts is that they increasingly feel the ‘pay day squeeze’ by spending more than half of their income on the day they get paid.
Now accountancy firm KPMG has looked at the issue and found that one in four Scots are spending more than 50% of what they earn on the day it arrives in their account.
The startling statistic looks even more shocking when compared to the 2018 survey which revealed that just 12% of Scots were doing the same thing.
Utility bills, housing costs and food shopping are the three of the most common payday costs.
Also, 65% of Scots say that their rent or mortgage payment is their biggest outgoing.
Scots are saving less
The research also reveals that 43% of Scots save less than 5% of what they earn and 20% save nothing.
Of those Scots who have to find extra money each month, 13% turn to credit cards.
Worryingly, of those who spend over half of their income on pay day it is Millennials who will do so with 29% them admitting to this.
A spokeswoman for KPMG Scotland said: “The study highlights the precarious financial position for many in Scotland and there’s a big increase in the proportion of those spending a large portion of pay on the day it arrives in their account.”
If you live in Scotland, and this scenario sounds familiar to you, then it’s time to seek advice about what you can do with your debts.
Debt advisers available at Scotland’s Trust Deed
There’s a team of experienced and friendly debt advisers available at Scotland’s Trust Deed to speak with in confidence.
Any advice they give will be impartial, which means you don’t have to follow it, but you will learn ways to control debt and repay what you owe.
Among the debt solutions available for Scots include a trust deed, sequestration or a debt arrangement scheme.
A Scottish trust deed lets someone living in Scotland repay at an affordable rate with the remaining debt being deemed as unaffordable and written off.
For homeowners, this may be the ideal solution since they should be able to keep their home but the deed is a legal agreement you need to abide by.
Debt arrangement scheme
The debt arrangement scheme runs on similar lines but the entire amount will be repaid and you will continue life debt-free.
For more help and advice for Scots in debt who may be feeling the payday squeeze, then you should contact the friendly team at Scotland’s Trust Deed on (0141) 297 1178.