Harper McDermott and Trust Deed Scotland® have now helped over 30,000 people in Scotland to choose a formal debt solution that helped them to deal with their unaffordable debt.
Our team of debt advisers walk our customers through all debt solutions available in Scotland that can help to manage their problem debt. Including a Protected Trust Deed and the Debt Arrangement Scheme; these debt solutions allow customers to repay what they can afford and to make a fresh start once their chosen debt solution has been completed.
In 2023, we helped 1,791 people into a Protected Trust Deed and 1,410 into the Debt Arrangement Scheme. As well as 1,133 Harper McDermott customers to successfully complete their Trust Deed.
2024 Customer Survey
To enable us to further understand our customers and to improve the quality of service we provide, we asked our customers to complete a survey at the end of the previous year. This customer survey received 2,246 customer responses through November and December 2023.
About Our Customers
Gender
Our customers are evenly split in gender. The cost of living crisis is affecting many people across Scotland at the moment, with more people searching for debt advice than ever before; all of us are affected regardless of gender.
Age
Most of our customers are in the 35-44 age group, with a high percentage of people in the 26-34 and 45-54 age groups too.
People aged 35-44 are subject to increased financial pressures such as parenthood, and mortgage costs and are most inclined to possess consumer credit. Young adults between the ages of 18-34 tend to be burdened with early career challenges, student loans and the pressures of establishing independent households.
Age Range | % of Customers |
---|---|
18-25 | 3% |
26-34 | 18% |
35-44 | 34% |
45-54 | 27% |
55-64 | 14% |
65+ | 4% |
Geographical Location
Our team is based in Glasgow, with over 20 debt advisers and over 40 other staff members from our Creditor Contact Team to Customer Service Advisers and our Insolvency Practitioner.
We provide tailored debt advice on all Scottish statutory debt solutions: Protected Trust Deeds, the Debt Arrangement Scheme (DAS), the Minimal Asset Process (MAP) route to Sequestration and Full Admin Process Sequestration.
Most of our customers are in the Glasgow City area, closely followed by North Lanarkshire and Fife.
The rising cost of living affects households across Scotland. Rural, Suburban and urban areas across the country demonstrating the scale of problem debt.
Council Area | Number of Customers | % of Customers | Average Debt Level | Minimum Age | Maximum Age |
---|---|---|---|---|---|
Glasgow City | 1190 | 10.9% | £21,472.48 | 20 | 83 |
North Lanarkshire | 969 | 8.8% | £22,220.65 | 20 | 79 |
Fife | 850 | 7.8% | £21,095.18 | 20 | 84 |
South Lanarkshire | 780 | 7.1% | £24,185.69 | 21 | 85 |
City of Edinburgh | 534 | 4.9% | £20,903.19 | 22 | 82 |
Aberdeenshire | 468 | 4.3% | £24,091.26 | 22 | 74 |
Renfrewshire | 467 | 4.3% | £22,412.85 | 21 | 81 |
West Lothian | 437 | 4.0% | £21,431.28 | 21 | 79 |
Aberdeen City | 425 | 3.9% | £20,998.94 | 21 | 78 |
Falkirk | 420 | 3.8% | £21,166.43 | 20 | 74 |
North Ayrshire | 386 | 3.5% | £20,208.83 | 20 | 75 |
Highland | 381 | 3.5% | £22,276.85 | 21 | 77 |
East Ayrshire | 349 | 3.2% | £22,004.51 | 23 | 74 |
West Dunbartonshire | 329 | 3.0% | £21,693.85 | 19 | 75 |
Dundee City | 319 | 2.9% | £20,078.03 | 23 | 70 |
South Ayrshire | 304 | 2.8% | £22,277.94 | 20 | 76 |
Angus | 275 | 2.5% | £22,173.66 | 22 | 77 |
Midlothian | 248 | 2.3% | £22,141.75 | 21 | 77 |
Perth and Kinross | 236 | 2.2% | £19,702.27 | 21 | 85 |
East Lothian | 229 | 2.1% | £21,292.10 | 22 | 73 |
Inverclyde | 183 | 1.7% | £23,176.39 | 23 | 73 |
Moray | 182 | 1.7% | £21,814.88 | 22 | 73 |
Dumfries and Galloway | 157 | 1.4% | £20,755.19 | 23 | 80 |
East Dunbartonshire | 157 | 1.4% | £22,721.86 | 21 | 81 |
Clackmannanshire | 138 | 1.3% | £22,483.12 | 21 | 75 |
Stirling | 127 | 1.2% | £20,988.98 | 22 | 77 |
Scottish Borders | 121 | 1.1% | £20,068.96 | 20 | 81 |
Argyll and Bute | 117 | 1.1% | £22,199.62 | 25 | 76 |
East Renfrewshire | 107 | 1.0% | £24,355.59 | 21 | 76 |
Na h-Eileanan Siar | 31 | 0.3% | £20,557.59 | 28 | 74 |
Shetland Islands | 24 | 0.2% | £29,162.77 | 26 | 63 |
Orkney Islands | 12 | 0.1% | £19,665.85 | 26 | 64 |
Vulnerability
For our customers who chose to declare a vulnerability in our survey, the responses were as follows:
- 83% stress and anxiety
- 56% depression
- 19% past bereavement
- 13% ill health
- 12% gambling, alcohol and other addictions
- 12% suicidal tendencies
- 10% physical disability
- 9% PTSD
- 4% other type of vulnerability
Impact of Debt on Mental Health
Talking to our customers during their debt help journey, we know that debt can have a big impact on mental health. The 2024 customer survey reflected these conversations, showing that…
A total of 93.1% of customers lost sleep worrying about their debt. This average comes from 93.9% of customer respondents in a Protected Trust Deed and 90.7% of customers in the Debt Arrangement Scheme.
A total of 90.9% of customers said that their mental health was impacted before entering into a debt solution. This result consisted of 91.5% of customers in a Protected Trust Deed and 89.1% of customers in the Debt Arrangement Scheme.
89% of customers said that their mental health improved after entering their chosen debt solution. This response came from 89.3% of customers in a Protected Trust Deed and 88% of customers in the Debt Arrangement Scheme.
Of those who said that debt had impacted their mental health, 98% also said that entering into a debt solution improved their mental health.
Seeking Debt Advice
Waiting Before Getting Debt Help
It’s important to seek debt help as soon as possible. Without a solution to debt in place, debts can build and lead to further financial struggles.
We asked our customers how long they waited before getting help with their debts:
- 16.3% got debt advice straight away.
- 34.4% waited up to 1 year before getting debt advice.
- 22.4% waited between 1 and 2 years before getting debt advice.
- 26.9% waited over 2 years before getting debt advice.
This totals to just over 50% of our customers waiting a year or more before asking for help with their debts and almost 50% that got help with their debts within a year of first needing help.
To compare the customers who are in a Protected Trust Deed with those in the Debt Arrangement Scheme, the responses were as follows:
- 15.6% in a Protected Trust Deed and 18.4% in the Debt Arrangement Scheme got debt advice straight away.
- 33.7% in a Protected Trust Deed and 36.5% in the Debt Arrangement Scheme waited up to 1 year before getting debt advice.
- 22.6% in a Protected Trust Deed and 22.1% in the Debt Arrangement Scheme waited between 1 and 2 years before getting debt advice.
- 28.2% in a Protected Trust Deed and 23% in the Debt Arrangement Scheme waited over 2 years before getting debt advice.
Reasons for the Delay in Reaching Out for Debt Advice
Our customers provided the following responses as reasons why they waited before seeking debt advice:
- 44% felt ashamed or embarrassed about their debt.
- 32% felt they could deal with debt themselves.
- 6% weren’t put off from seeking debt advice.
- 5% didn’t want to impact their credit rating.
- 4% didn’t know these solutions were available.
- 2% thought they had too much debt.
- 7% selected other.
Talking About Debt
There is a stigma attached to debt which can cause people to keep their financial situation to themselves. However, we know that the best way to resolve debt is by understanding the solutions available; and this can be achieved by having more conversations about debt.
It’s inspiring to hear from people who are reaching out for debt help that they were recommended by Harper McDermott customers. These conversations can help those who feel ashamed or embarrassed about their debt to realise that they are not alone.
35.8% of customers heard about Harper McDermott from friends, family or work colleagues.
Financial Circumstances
Income and Expenditure
The average amount of debt for all customers is currently £21,856.14.
The stats below demonstrate the income and expenditure of our customers:
Customers in a Protected Trust Deed
- The average amount of debt held by customers who are now in a Protected Trust Deed initially came to us with was £23,368.
- The average disposable income / offer of payment for customers in a Protected Trust Deed was £197.
- The average household expenditure for customers in a Protected Trust Deed was £2,345.
- The average household income for customers in a Protected Trust Deed was £2,515.
- 15% of customers in a Protected Trust Deed are in a mortgage.
- 70% of customers in a Protected Trust Deed have car costs.
- The average amount of debt repaid by our customers in total in 2023 was £4,476.
Customers in the Debt Arrangement Scheme
- The average disposable income / offer of payment for customers in the Debt Arrangement Scheme was £296.
- The average household expenditure for customers in the Debt Arrangement Scheme was £2,292.
- The average household income for customers in the Debt Arrangement Scheme was £2,679.
- 38% of customers in the Debt Arrangement Scheme are in a mortgage.
- 64% of customers in the Debt Arrangement Scheme have car costs.
- The total amount repaid to creditors from all customers in the Debt Arrangement Scheme during 2023 was £2,493,393.30.
Biggest Cause of Financial Difficulties
There are many reasons why people find themselves in debt. We asked our customers what had caused them to struggle financially and subsequently reach out for debt help:
- 25% said their debt was due to a lack of control over their finances.
- 23% were in debt to cover living costs.
- 12% had financial difficulty following a separation or divorce.
- 10% said they were in debt due to the cost of living increase.
- 6% were in debt following reduced income or benefits.
- 5% said their finances were impacted by covid.
- 20% selected other (including bereavement, unemployment/ redundancy, injury or health issue, irregular income).
Types of Debt that Caused the Most Worry
The debt solutions that our customers enter into help to manage their unsecured debts. The responses below illustrate which unsecured debts were causing the most concern for our customers:
- 79% credit cards
- 60% personal loans
- 30% overdraft
- 18% council tax arrears
- 17% payday loans
- 15% buy now pay later
- 14% gas and electric bills
- 36% other (including HMRC, DWP, Mortgage arrears, rent arrears and car finance)
Actions Taken to Combat the Cost of Living
With 10% of customers responding that they were in debt due to the cost of living increase, we also know that many customers were forced to cut back on essentials to avoid further debt. The answers below show how our customers have dealt with the rising costs:
- 78% cut back on socialising
- 46% cut back on heating
- 44% cut back on buying food
- 28% borrowed money from family/ friends
- 11% took on additional credit
- 8% haven’t needed to do anything
- 2% other
Living Arrangements
- 37% of customers were found renting from social housing.
- 27% of customers were renting from a private landlord.
- 24% of customers were homeowners with a mortgage.
- 12% of customers had alternative living arrangements such as owning their home outright.