As the economy continues to struggle the direct effects have been widely felt by households across Scotland. Recent rises in food costs, fuel and the impact of continued rises in energy bills have made it increasingly difficult for many households to make ends meet.
A recent survey has found that more than 500,000 Scots borrowed money to buy food whilst 250,000 either used a credit card or a loan of some kind to pay for their gas or electricity.
Credit cards and charge cards are used by many to pay for their weekly shopping for a variety of reasons such as convenience and to take advantage of loyalty schemes. The problem however comes at the end of the month for people who are unable to clear their credit card or charge card balances and who end up paying high interest charges, costs and even late payment fees.
These findings highlight the stark reality of hardship for many people in Scotland today. The fact that so many people are having to borrow money to eat and cover basic requirements such a heating is a worrying situation. This can signal the start of the so called debt spiral where people borrow on a continuous basis, often at high interest rates and find themselves unable to pay back what they owe. This then leads to more borrowing and more difficulty and so the spiral begins.
When people find themselves in this situation they should seek professional debt advice as soon as possible to find ways to solve the debt problem as lack of action only makes the problem worse. There are many debt solutions available to help people improve their financial circumstances and reduce their debt. The key is to take action.