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 keep up 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 Harper McDermott customer survey, we asked our customers how they were dealing with the cost of living crisis.¹
Many of our responses said they had 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 to combat the cost of living crisis.
- 46% of our customers told us that they cut back on heating to combat the cost of living crisis.
- 44% of our customers told us that they cut back on buying food to combat the cost of living crisis.
- 28% of our customers told us that they borrowed money from family or friends to combat the cost of living crisis.
- 11% of our customers told us that they took on additional credit to combat the cost of living crisis.
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.
Harper McDermott customers reach out 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; *
- 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 and step towards a brighter future.
Here at Harper McDermott, we provide specialist advice on formal debt solutions including a Protected 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.
For confidential, non-judgemental and friendly advice, contact us at 0141 278 3989 or get in touch via our WhatsApp Debt Advice service.
“Everyone at Harper McDermott are so friendly, so helpful and actually understand that not everyone needs help because they were doing the wrong thing in their financial life, especially with the present pressures of living costs. We found that using Harper McDermott to help us out has got our life back to a much better place, and I would highly recommend them to anyone struggling with debt. You will not be judged when you get in touch, you will be understood, and helped all the way.”
– Andy
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¹Survey results taken from November-December 2023 with 2,246 Harper McDermott customer responses.
*Figures taken on 18/03/24.