Debt Crisis Scotland – 50 Scots Going Bankrupt Everyday
Several thousand Scottish residents continue to reel under mounting personal debts. The situation has reached such alarming proportions that every single day, at least 50 Scots are going bankrupt.
National Economy At Risk
Analysts and policy makers are equally concerned of the rising household debt and its implications on the national economy. More and more Scots are today willing to support consumerism through personal debt. This is essentially an unhealthy trend and the global economic melt down of 2008 ought to remind the policy makers of the serious consequences of personal debt supporting consumerism. Apart from spelling doom for the individual debtors, the impact on the national economy can potentially be even greater if household debt is not reigned in quickly.
Living Expenses through Credit?
When individuals are compelled to support their everyday living expenses through credit, they are reasonably aware that the means to pay off creditors is limited or even absent. Some people even use up available credit for holidaying and other frivolous reasons, simply because credit is available. Such a spending spree can hardly last a few weeks since the bills will start arriving very promptly squeezing out whatever little remains from the pay check. As a result, many Scots have turned to payday loans as a temporary means of tiding over the crisis. Lack of awareness of well thought out debt solutions like the DAS or the Scottish Trust Deed are driving the Scots to payday loans or other similar lenders who can only add to their serious financial injuries.
Annual Declines Not A Cause for Celebration
Although the number of personal insolvencies has witnessed a steep increase in recent times, the silver lining in the cloud is that on an year on year basis, there has been a decline. However, this may not be cause enough for celebration because the pent up indebtedness of households can potentially reverse the trend sooner than later.
Increasing awareness of various debt solutions such as the Scottish Trust Deed, and Debt Arrangement Scheme by Debt Advisory Scotland, the Citizens Advisory Bureau and similar medium highlighting the ability of debtors to achieve reduced monthly payments and partial debt write offs including freezing of future interest and charges is the need of the hour. Concurrently, existing regulations can be revisited to make credit available only to those who have the ability to meet their repayment obligations regularly. Free flow of credit to support consumerism through credit must be contained until more money can be put in the hands of individuals struggling to make both ends meet.
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