A new survey commissioner by the consumer watchdog Which? has found a record number of people missed a payment or defaulted on an unaffordable debt in Scotland in January 2023. Worryingly, the report showed that the number of households defaulting on debt repayment rose by 21% across the UK from £1.9m to £2.3m within one month.
As the cost of living crisis continues to push households across Scotland to the limit and with interest rates, more people are struggling to repay debts.
Speaking about the findings of their report, Rocio Cocha of the consumer group said “As the cost of living crisis continues to bite into household finances, we are calling on businesses in essential sectors – like food, energy and broadband providers – to do more to help customers get a good deal and avoid unnecessary or unfair costs and charges.”
Which? research shows an alarming number of people are struggling with the financial and emotional impact of rising prices. For many people that means missing their mortgage payments, not paying rent or leaving their unsecured debt unpaid entirely.
Trust Deed Scotland have already been busy in 2023 and have given confidential, tailored debt advice to hundreds of people who have since entered into a formal debt solution such as a Protected Trust Deed or the Debt Arrangement Scheme in order to take back control of their debt.
Would a formal debt solution help me to repay my unaffordable debt?
People with unaffordable debt in Scotland can get help from Trust Deed Scotland.
Our experienced debt advisers have helped over 30,000 people to regain control of their finances in Scotland and in a 2022 survey, 84% of our customers told us that their mental health improved as a result of entering into a formal debt solution with us,