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The Citizens Advice Scotland has today released the latest of its seven recent reports cataloguing the harsh reality of debt within Scotland. The reports document that, following news at the end of quarter two in 2009, Scots are struggling under unmanageable burdens of financial difficulty and debt and are making serious sacrifices in order to meet debt repayment demands from creditors.

What are the consequences of both the situations likely to occur as a consequence of a crisis in personal financial management and the unsustainable methods being utilised in order to meet debt payment obligations? David Brown examines these issues with the CAS statistics firmly in consideration.

The statistics published provide a startling insight into the financial difficulties that individuals in Scotland are experiencing with the most affected groups including youth and pensioner age groups, single parents and individuals classed as sick or disabled. These figures, when understood in the context of the recent news on the rising levels of debt owed through facilities of consumer credit, detail a worrying trend in the use of credit as unfeasible long-term financial strategies.

Citizens Advice Scotland has voiced concern over the average proportion of debt that vulnerable individuals are accumulating. In the report it is documented that the debt amassed by individuals over the age of 60 has increased by approximately 50% in two years to a figure that exceeds £26,000. In addition, the statistics highlight a worrying attitude towards financial health with the average debt owed by youth between the ages of 16 and 24 having nearly doubled since 2004.

The results for single parents also represent significant cause for concern with a ratio of debt accrued to wage earned of £19 of average debt for every £1 earned through employment. It can be seen that this is not a trend that has instantly developed, since statistics from studies conducted by CAS in 2004 demonstrated that single parents owed £14 for every £1 earned.

In addition to the statistics presented on the difficult financial situations facing the elderly and vulnerable, the survey results published detail a concerning attitude towards credit and debt in younger individuals. When the context in which news on consumer credit, particularly regarding credit cards, has been released for quarter three analyses is given specific consideration, this blatant disregard for the repayment of debts is worrying.

Perhaps the most concerning of the full set of results given is the figure that two out of five individuals surveyed admitted to prioritising making a payment towards their debts above essentials such as food and fuel. Furthermore, a quarter of these individuals disclosed that they had applied for a larger loan in order to clear another debt, in a similar manner to the theory behind the function of a debt consolidation loan.

It is morally right to note that the urgent requirement for professional debt advice and a strong, stable economic recovery is clearly evident within both Scotland and the wider scope of the United Kingdom.

About the Author:

This article was written by David Brown on behalf of IVA.net – a website supplying no-obligation, free information, guides and tools on matters of financial difficulty and debt. For further information on debt and debt solutions