Citizens of the city of Dundee have the highest levels of personal debt in Scotland according to the latest research results.
£20,000 is the staggering amount of the average debt – that’s an astonishing amount of money and it is easy to see why people are struggling and becoming desperate.
Financial experts are blaming the heavily criticised Universal Credit System and the low amount of wages in the city.
In comparison, the average personal debt for the rest of Scotland is £17,600. That’s still a worrying amount. The figures have been released by Creditfix, a personal insolvency company.
Scotland’s Trust Deed see the repercussions of debt
Scotland’s Trust Deed regularly see the repercussions of this level of debt and we are adept at helping our customers get themselves back onto a strong financial footing.
The summer holidays can often be a time when families find themselves getting into even more debt. Six weeks without access to free school meals and the pressure to entertain the children and ‘make memories’ forces cash-strapped parents to turn to credit cards to get by.
To counter the alarming level of debt in Dundee, one charity has introduced a service for the people who are in financial hardship.
The operations head has reported that between December and June last year, the increase in the average amount of their customer’s personal debt had risen to over £1,000.
Increase in debt
So, who and what is to blame for the increase in debt over those six months?
- The cost of Christmas (another source of pressure for families)
- Universal Credit and all the issues that it has created
- A rise in the cost of living
- Consistently low incomes.
Scotland’s Trust Deed recently published a blog about the 47% of people who are in work but who run out of money by the end of the month at least once a year.
In the same survey that we quoted in that blog found that 25% of Scottish people are finding it increasingly difficult to survive on their existing pay packet.
Sadly, in the current climate these trends are likely to continue which is why Scotland’s Trust Deed strongly advises against turning to pay day loans or high interest credit cards to manage the shortfall.
Universal Credit is proving to be a challenge to the people who have been placed into the system and if you find yourself in a position where you are no longer able to manage financially due to Universal Credit, contact your local Jobcentre Plus. They have measures in place to support people who are being forced to wait too long for their first payment.
Help and advice about debt in Scotland
For more help and advice about debt in Scotland and ways to resolve it then contact the friendly debt advisers at Scotland’s Trust Deed.