Unless consumers are careful, Christmas 2012 is potentially a ‘perfect storm’ for getting into debt trouble.
(PRWEB UK) 6 December 2012
Debt solution firm Scotland Trust Deeds has warned thousands of Scots could be heading into a “perfect storm” of debt danger this Christmas.
With many consumers struggling to make ends meet – and a growing percentage turning to high-interest payday loans to plug the gaps – increasing numbers are on the brink of plunging into arrears this festive season.
A study by insolvency trade body R3 has revealed the number of Scots struggling with payday loan repayments has now reached double the UK average, with one fifth of those surveyed indicating a belief that their financial situation will deteriorate over the coming months.
Even more worryingly, 59% revealed they are worried about their general levels of debt heading into Christmas.
The pressure to spend extravagantly on presents, food and drink over the next month is likely to take its toll on many people north of the border.
But David Morley of Scotland Trust Deeds, who assist people struggling with debt into Trust Deed agreements designed to solve the problem, warned against taking the easy option.
He said, “Unless consumers are careful, Christmas 2012 is potentially a ‘perfect storm’ for getting into debt trouble.
“Times are really tough, but many people will feel under pressure to overspend to give their families the Christmas they deserve. And with the explosion of payday loan companies offering short term loans to those who may not be able to get credit elsewhere, the temptation may be too much.
“We fear that a lot of people will end up drowning in debts they can ill afford.
“If you already have a payday loan, or are considering one this Christmas, we would strongly advise you to take a financial health check and see if a Trust Deed or other debt solution could reduce your outgoings, rather than sliding further into debt.”
Scotland Trust Deeds are a Glasgow-based subsidiary of the Money, Debt and Credit Group, who have been helping people across the UK tackle their debts since 2006.
They believe everyone struggling with debt in Scotland has a right to the best possible financial advice.
A Trust Deed is a Scottish Government-approved process designed to help bring people out of debt. It is an agreement between debtor and creditor whereby agreed, affordable repayments are met for a period of three years, after which remaining debts are written off.
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