Cost of Living Crisis

New polling figures show that 84% of people in debt attribute the rising cost of living, including groceries and utility bills, to the reason for their debt problems.

Using this figure, CAS estimates that this equates to 657,323 people in Scotland who are now driven into debt due to the cost of living crisis.

 

Cutting Back on Essentials

Are you struggling to cope with rising costs?

With the high cost of everyday essentials, we are feeling the detrimental effects across the country. Many people are cutting back on essentials such as heating and food to cope with these rising costs.

In a 2023 Trust Deed Scotland^® customer survey, we asked our customers how they were dealing with the cost of living crisis.¹

Many of responses said that they were having to cut back on a range of essentials as well as find the money to pay for essentials elsewhere such as friends, family and taking out additional credit.

78% of our customers told us that they cut back on socialising.
46% of our customers said that they cut back on heating.
44% of our customers told us that they cut back on buying food.
28% of our customers said that they borrowed money from family or friends.
11% of our customers told us that they took on additional credit.

Getting into Unaffordable Debt

Debt happens.

After years of speaking to people in unaffordable debt, we know that debt is often out-with our control and that debt can happen to people from many walks of life. With many people now finding themselves in a position where essentials such as food and heating are unaffordable; relying on other methods to get by such as credit cards, personal loans and overdrafts.

Trust Deed Scotland® customers reach out to us with many different debt concerns:¹

• 79% of our customers said that they were most worried about credit card debt.
• 60% of our customers said that they were mainly concerned about personal loans.
• 30% of our customers said that overdraft fees were their biggest concern.
• 18% of our customers said that were worried about council tax arrears.
• 17% of our customers said that they were most concerned about payday loans.
• 15% of our customers said that buy now, pay later fees were their biggest worry.
• 14% of our customers said that were mainly concerned about gas and electric bills.
• 36% of our customers said that they were most worried about other debt such as mortgage arrears, rent arrears and car finance.

Coping with the Cost of Living Crisis

If you are finding that rising costs are driving you into unaffordable debt, you are not alone.

A YouGov active sampling poll asks their panel of users to compare their current financial situation to what they think their financial situation will be in 12 months’ time. Looking at the results for Scotland from January 2023 – March 2024, averages are;²

• 34% said that they imagine their financial situation to be worse.
• 35% said that they estimate no change to their financial situation.
• 20% said that they think their financial situation will be better.
• 11% said that they didn’t know.

Debt Help is Available

If you are living with unaffordable debt, you are not alone. We provide debt advice for people across Scotland; helping our customers to choose a debt solution that can get their finances back on track.

Here at Trust Deed Scotland^®, we provide specialist advice on formal debt solutions including a Trust Deed, the Debt Arrangement Scheme, and the Minimal Asset Process. These solutions allow you to reduce your current payments such as credit cards and loans, and other types of debt that you realistically can’t afford to repay. Your reduced payments will become a single monthly payment based on what you can afford, paid over a fixed timeframe. This helps our customers to regain some financial stability and afford the cost of their essentials again.

We are rated No.1 in Scotland for debt advice, with over 10,000 five star reviews on TrustPilot. This year, we have already heard from people across Scotland who have felt the detrimental impact of the cost of living crisis. Read some of these reviews from 2024 below:

 

“After trying to manage and cope with rising living costs over the past 13 years, and more and more debts increasing day by day in recent times, contacting Trust Deed Scotland^® was our final option…”

“… We have just signed our papers today but the relief and weight that has been lifted has really given me a sense of hope for the next 4 years, knowing that the stress and upset from the challenge of managing mounting debt in recent times will be behind us…” – Mark

 

“I have been extremely stressed over money problems, with the cost of living and the pandemic, I was hit hard just like many others. I decided enough was enough and reached out to Trust Deed Scotland^®, my adviser Matthew has been so kind and reassuring, an asset to the team and has helped immensely.

Don’t suffer in silence, if you are struggling give them a call.” – Simone.

 

“…It’s been an easy process where you regain your financial independence. Some would argue 4 years is a long time but the stress relief alone was worth it and now, coming out the other side, I can say it’s flown by. My experience was very positive from start to finish and I can’t thank the whole team enough. I would strongly advise anyone facing financial hardship due to cost of living etc to take back control of your life…” – Mark.

 

“I’ve recently used Trust Deed Scotland^® to help manage my debt, through the cost of living and always something breaking down be it the boiler or the car, it seemed more and more things were having to go on credit cards, and although I’ve managed to keep on top of the payments there would be literally nothing left to live on. Would cause anxiety, sleepless nights and wondering how I was going to get out of the never ending loop I was going around…”

“…the weight that has been taken off my shoulders is amazing, now I pay 1 affordable payment a month with more than enough left that I can actually start to save a little!” – Samantha.

 

To find out more about the available formal debt solutions that can help you to manage the cost of living, get in touch with our team of experienced debt advisers today.

For confidential, non-judgemental and friendly advice, contact us via our WhatsApp Debt Advice service, our Livechat Debt Advice service, or to quickly check the debt solutions you may be eligible for, use our Trust Deed Wizard^® tool.

Alternatively, call us on 0141 221 0999.

 

¹Survey results taken from November-December 2023 with 2,246 Trust Deed Scotland® customer responses.

²Figures taken on 18/03/24