With growing numbers of Scots struggling financially, there is a growing issue with those who have a credit card debt.
Indeed, a warning has been issued for young people who have credit card debts as they are most at risk from a potential interest rate rise.
Along with their credit card debts and other personal debts could struggle after interest rates were put up to reach the highest level since 2009.
Economic experts say interest rates could rise still further which means that repaying debt will become more expensive.
It also looks like that the availability of cheap credit, which lots of young Scots rely on to get by on a daily basis, could now diminish.
An outstanding credit card balance
Now, the trade body for insolvency professionals, R3 says that around 44% of those people aged between 25 and 44 have an outstanding credit card balance. That compares to just 26% of people who are aged over 55.
The organisation also points out that the amount owed is also increasing, and one financial well-being firm says that since 2017, household debt has risen to more than £13,000.
However, for those who are aged between 25 and 44, their debt is now more than £14,500.
One insolvency practitioner at a leading firm told a national newspaper: “Over the last 10 years, a generation of new borrowers has seen over low rates, but normality is now returning and interest rates are starting to rise; so will the repayments.
‘Struggling to meet their monthly credit card and loan repayments’
“For those who are struggling already to meet their monthly credit card and loan repayments interest rate rises could be painful.”
But since rising living costs means many of us are struggling, growing numbers are relying on credit cards to get by every day.
Research reveals that half of us regularly need to borrow cash to make ends meet and for those under 30, the figure rises to 70%.
While there’s no prediction for how high interest rates may go, it’s always a good idea to tackle debt whenever possible.
If you live in Scotland and you are struggling with your debts currently, then it’s a good idea to speak with a professional to see what your options are.
Friendly debt advisers at Scotland’s Trust Deed
It may help that there is a team of friendly debt advisers at Scotland’s Trust Deed, who can discuss in confidence what your potential debt solutions might be.
For example, in Scotland it’s possible to undertake a Scottish trust deed which will see someone in debt repaying what they can afford over a longer period of time.
The big attraction for a trust deed is the opportunity of having whatever debt remains at the end of this agreed period being written off. This debt is considered to be unaffordable.
It’s also possible to discuss the potential of a debt arrangement scheme and sequestration, which is better known as bankruptcy.
The debt arrangement scheme is also a popular choice because it runs along similar lines to a trust deed, except there is no amount remaining at the end which will be written off by creditors.
Advice about a Scottish trust deed
For more help and advice about a Scottish trust deed, sequestration or a debt arrangement scheme, then it’s time to contact the friendly Scotland’s Trust Deed team of debt advisers.