Plans to develop a free debt advice system have been published by the Scottish Government. Continue reading Scottish Government sets out national vision for debt advice
Tag: debt
“Broken economy” is driving record levels of household debt, warns TUC
Low pay, insecure work and austerity are feeding a growing debt crisis, the TUC has warned.
New TUC analysis published today shows that:
- Unsecured debt per household rose to £15,880 in the first quarter of 2019, up £1,160 on a year earlier.
- Over half of households report having unsecured debt, most commonly in the form of credit card debt (60%), overdraft (28%), personal loans (25%) and car finance (25%).
- Young people are disproportionately likely to be in debt. 70% of 18-34 year-olds report having a type of unsecured debt. This drops to 33% among people over 65.
The TUC believes that persistent low pay is the key driver of household debt. Real wages are still lower than they were before the 2008 crisis and working families are struggling to make ends meet without going into the red.
The latest analysis also shows that of those households with unsecured debt:
- 1 in 5 say repayments are a “heavy burden on their finances”.
- 1 in 7 (14%) have fallen more than two months behind on repayments in the last year.
- 45% don’t feel that they have enough money set aside for emergencies.
TUC General Secretary Frances O’Grady said: “Our broken economy is forcing working families deep into debt.
“Low pay, insecure work and austerity have pushed millions of households to the financial cliff edge. Big corporations are raking in huge profits at working people’s expense. And successive governments have done nothing to avert the crisis.
“It’s time to reset the balance of power in our workplaces and our economy. Government must make more employers negotiate pay and conditions with unions. That will lift wages for everyone and stop working families having to rely on credit cards and overdrafts to get through the month.”
The TUC has published new proposals to ensure that workers get the chance to negotiate better pay and conditions through trade unions. These include:
– unions having access to workplaces to tell workers about the benefits of trade union membership, following the model in New Zealand
– new rights to make it easier for unions to gain the right to negotiate at workplace level
– new rights for unions to negotiate right across sectors, starting with hospitality and social care
The TUC is also calling for:
- a £10 National Minimum Wage to be introduced as quickly as possible
- a ban on zero-hours contracts, and a crack down on insecure work that means people don’t know how much they’ll earn from one week to the next
One in five Scots would never tell their partner about their debt
Almost one fifth (19%) of UK consumers would never tell their partner about their debts, according to research commissioned by credit information provider, Equifax. Continue reading One in five Scots would never tell their partner about their debt
Scots are drugging themselves to sleep
DEPRESSED and anxious Scots say they are medicating themselves to sleep – and over a quarter say they have had to see their doctor about the problem. More than two in five (44%) Scots say they have used medication or alcohol to get to sleep. Continue reading Scots are drugging themselves to sleep
Talk Money tomorrow
The City of Edinburgh Council will join partner organisations in four Talk Money events held across the city to share tips and advice for managing money. Continue reading Talk Money tomorrow
Money worries? Start talking!
Wednesday 14th November 11am – 2pm
The Prentice Centre, Granton Mains Avenue
(opposite entrance to Edinburgh College Granton Campus)
The event brings together multiple agencies who are working to tackle poverty and inequality and assist people in a range of ‘financial capability’ areas including income maximisation, debt advice, help with fuel and housing costs, free school meals and clothing grants, housing support, employability, low cost credit, etc.
Organisations taking part in the Prentice Centre event are:
- Granton Information Centre (hosts)
- Muirhouse Housing Association (event sponsors)
- Changeworks
- Family & Housing Support
- Scotcash
- Y People
- Community Renewal
- Circle
- West Granton Housing Co-operative
- Advice Shop
- Dunedin Housing Association
- Fresh Start
- Turn 2 Us
For further information telephone Granton Information Centre 0131 551 2459 or 0131 552 0458 or email michelle@gic.org.uk or david@gic.org.uk
Personal debt continues to rise
Is household debt out of control?
According to the latest YouGov debt research commissioned by Equifax[1], 15% of UK adults have missed a payment on a credit card or short term loan at some point. Almost a third (32%) of UK adults with a credit card admit that, in a typical month, they don’t pay off their credit cards debts in full, with over half (52%) of these saying it’s because they can’t afford the full monthly balance. Continue reading Personal debt continues to rise
Plan now to avoid festive finance hangover, says Community Bank chief
Falling behind with post-festive finances needn’t be the ‘horror story’ that is often depicted by the media, according to the founder of an Edinburgh-based community bank, which is already dealing with a ‘steady stream’ of savings applications for next Christmas. Continue reading Plan now to avoid festive finance hangover, says Community Bank chief
Stop the evictions!
CRISIS: campaigners demand an end to the eviction of families
Campaigners resisting the evictions of families due to the Benefits Cap are protesting at the full meeting of City of Edinburgh Council thios morning. Deputations from North Edinburgh’s All About Me and Power to the People groups will demand the council take action on the crisis. Last month the campaigners occupied both Council offices and Scottish Conservative leader Ruth Davidson’s constituency office to demand housing for homeless families. Continue reading Stop the evictions!
Teetering on the brink: most Scots one bill away from debt
Over half of Scots sometimes run out of money before payday
More than half of Scots (51%) say they occasionally run out of money before payday, with 15% saying they do so ‘most of the time’ or ‘always.’
The figures are part of a major new report published by Citizens Advice Scotland (see below) which aims to take a snapshot of the financial realities facing Scots in 2017, and in particular the relationship people have with debt.
Other key findings from the research, which was conducted by Ipsos Mori, include:
• 55% of Scots would be unable to pay a sudden bill of £100 without borrowing, using savings or cutting back on essentials. The equivalent figure for a £250 bill is 69%, and for £1,000 is 83%.
• Only 42% of Scots feel they understand their rights in relation to debt.
• Older people and those with full-time jobs are less likely to be in debt, but many Scots who are in work report that they often need to borrow to supplement their income.
• Those who are in work are just as likely to be refused credit as those not in work.
Publishing the report, ‘Living one payday to the next,’ CAS policy manager Keith Dryburgh said: “This study shows that for most Scots debt is just a fact of life. It also shows that debt is not just an issue for people who are on low incomes. Many working Scots on reasonable salaries occasionally need to borrow money to get them from one payday to the next.
“While many of these people would not regard this as a crisis situation, our research also finds that many people are vulnerable to financial shocks, like being unable to pay a sudden bill without getting into debt or using savings. And more than half of Scots are not familiar with their rights as debt consumers.
“Given that debt is so pervasive in Scotland, we are keen to make sure that people know their rights in relation to debt, and also know what options they have if they want to manage their finances better. We have information and tools on our website that will help anyone do this, and free impartial advice is also available at every local CAB.”