Over 40% of people in Scotland are concerned about income during the Coronavirus lockdown, Citizens Advice Scotland reported.
Of those worried about their finances, the money and debt advice charity said that 31% of its respondents said they were concerned about utility bills, rent and debt repayments.
In addition, 27% are concerned about mortgage repayments and the same number are concerned about paying for food and other essentials. 29% say they worry about paying council tax.
Debt Advice Charity Concerns
Citizens Advice Scotland, who ran a survey on the subject said the concerns around income show the extent of financial uncertainty people continues to feel during the outbreak.
Myles Fitt, the Financial Health spokesperson for the Scottish debt advice charity, speaking on the issue advised:
“What advisers across the Citizens Advice network were seeing before Covid-19 was the issue of people struggling to pay for key bills as a result of a lack of income in the first place.
With over 40% of people in our survey concerned about their income, there is a real risk the pandemic makes this a more serious issue for a larger group of people.
Both the Scottish and UK governments, as well as industry regulators, have taken significant steps to ease the short term pressure on people meeting the costs of daily living. Our message to people is that support is there and to access the support you are entitled to.
Across the country, the Citizens Advice network has adapted to these changed circumstances, with CABs across the country still delivering advice in these challenging times, either on the phone or electronically by local advisers.”
Trust Deed Scotland®, the leading debt advice company in Scotland further advised:
“Many people in Scotland are now aware that lenders and companies ranging from mortgage lenders, credit card companies to car finance and guarantor loan companies are offering payment breaks but the message is being lost in translation that individuals need to contact their lender and request the payment break. The lender simply will not offer this without being prompted.
Now with it being the first day in May, traditionally the first of a month is the day most people have a direct debit or standing order set up, those who have cancelled without informing their lender may start to see further charges being added to their debts and that will potentially also have a negative impact on their credit ratings as their account will show missing transactions rather than those authorised by the lenders.
This is also potentially the first payday date for some people laterly furloughed after the outbreak began. We’re concerned that these issues come cause issues further down the line when the post-Coronavirus recession hits.
We repeat our previous advice that if you’re struggling with debts due to your income being reduced as a result of the Covid-19 outbreak, seek payment breaks wherever you can and get it confirmed by the lender by email, or in writing.”
UK’s Personal Debt Shrank In March
It’s not all bad news, fortunately. Personal debt totals have indeed shrunk in the month of March, it has been confirmed.
The amount of debt held on credit cards was lower than the same month the year before for the first time since it began recording the data in 2008, the Bank of England reported.
Households in the UK paid back a staggering £3.8billion more debt than they borrowed in March 2020, the biggest figure on record, as households shunned credit cards in the face of the Coronavirus crisis.
Credit card debt reduced by £2.4bn in a month to £69.3bn, for only the second time since July 2013. Therefore, the amount UK consumers have outstanding on credit cards has fallen, according to the Bank of England figures.
As written about recently by Trust Deed Scotland®, many households across Scotland have saved money during the Coronavirus lockdown in Scotland by adopting careful Coronavirus household budgeting techniques.
Coronavirus Debt Advice in Scotland
At Trust Deed Scotland® we understand that debt can be overwhelming.
You may be finding it difficult to cope already and with the current Covid-19 conditions, this may be causing you to worry further about how you will afford to repay your unsecured debt, don’t worry every year we help thousands of Scottish residents enjoy a debt free future.
For qualified, expert coronavirus debt advice in Scotland, give us a call on 0141 221 0999 or complete our Trust Deed Wizard®.