Credit card debt soars in Scotland
12/01/2006
Credit card debt is almost a third higher than in Scotland compared to the rest of the UK, new figures have revealed.
According to research by the charity Debt Free Direct, the average Scot owes £7,848 on credit cards and store cards, compared to the average UK debt of £5,993.
In addition, it was found that 27 per cent of Scottish adults have outstanding bills on credit cards, while the UK average stands at 23 per cent.
The Scottish National Party has condemned the "extortionate" interest rates charged by some banks, with Kenny MacAskill, the party's justice spokesperson, claiming they can be as high as 69 per cent.
"There is clearly a debt crisis looming in Scotland as the cost of Christmas returns to many Scottish households with a vengeance as credit card bills arrive," Mr MacAskill told the Scotsman.
"Whilst individuals must take responsibility for their spending, they are entitled to protection from outrageous credit card charges," he remarked.
It is thought that a change in public attitudes has contributed to this increasing debt, with many unwilling to save for the things they want.
Citizen's Advice Scotland dealt with 11 per cent more instances of people struggling to cope with debt in 2005 that the previous year.
According to research by the charity Debt Free Direct, the average Scot owes £7,848 on credit cards and store cards, compared to the average UK debt of £5,993.
In addition, it was found that 27 per cent of Scottish adults have outstanding bills on credit cards, while the UK average stands at 23 per cent.
The Scottish National Party has condemned the "extortionate" interest rates charged by some banks, with Kenny MacAskill, the party's justice spokesperson, claiming they can be as high as 69 per cent.
"There is clearly a debt crisis looming in Scotland as the cost of Christmas returns to many Scottish households with a vengeance as credit card bills arrive," Mr MacAskill told the Scotsman.
"Whilst individuals must take responsibility for their spending, they are entitled to protection from outrageous credit card charges," he remarked.
It is thought that a change in public attitudes has contributed to this increasing debt, with many unwilling to save for the things they want.
Citizen's Advice Scotland dealt with 11 per cent more instances of people struggling to cope with debt in 2005 that the previous year.
