We are all aware of the financial difficulties that face a large percentage of our population, and a growing need for debt help in Scotland but whether we are aware of quite the extent of the problems debt is causing us is a different question altogether.
A recent study by the government has highlighted the number of people being threatened with court summons due to their inability to pay off their debts.
The Accountant in Bankruptcy has released some damning figures on snowballing debt problems in Scotland that go a long way in painting a picture of exactly how badly our society is affected by these issues.
The court system has accounted for almost 380,000 individual cases dealing with people struggling with debt, a 20 per cent increase from the previous twelve months. Put into perspective, that’s over 1000 people every single day of the year.
There are some areas that have been hit terribly by the increase in the cost of living that the country has experienced over the decade. In Lothian, for example, the number of cases increased by just under 50 per cent – an astonishing incline in such as short space of time. As local authorities begin to gain greater power through the measures they can use to recoup monies owed to them, ordinary people are being plunged into difficulty as debts begin to snowball out of control.
While the governments in Westminster and Holyrood are confident that suitable economic recovery is being made, the harsh reality is that for the people of Scotland the effects of the recession are still being felt.
Snowballing debt problems – What type of debts are they?
As well as council tax arrears debt problems, the number of court cases for other forms of debt – personal loans, credit cards and the like – has also increased by 44 per cent. It’s a growing trend that is seeing many of us unable to halt our finances spinning out of control. Debt builds, and our options become thinner and less appealing.
Leonie Donald, a partner at law firm Aberdein Considine, said in regards to reported snowballing debt problems in Scotland: “The figures are worrying in that they highlight the difficulties that are being encountered by individuals in paying their council tax, which is an increasing concern for all those involved. It is indicative of an economy still struggling to recover. It is also an indicator that councils are taking a harder line in recovering arrears.”
There is a growing fear that those in the worst financial situations are not being provided with the support and advice they need in times of hardship.
Here at Trust Deed Scotland, we believe that people need to be aware of other viable options of debt relief that are available to them. With the opportunity to have a secure payment plan set up with facility to protect the deed from further intervention from creditors, we are able to provide people with the support they need.
If you feel your debts have snowballed into an unmanageable situation, it is important you act sooner rather than later.
For more information on Trust Deed Scotland and what benefits applying for a Scottish Trust Deed can have on your financial situation, do not hesitate to contact one of our Scottish Debt Help team today.