Scots ‘less worried’ about ability to pay off debt

MoneyScots have become more confident about their ability to pay off their debts, according to new figures.

The number worried about meeting repayments has fallen from one in four two years ago to just over one in ten.

However, consumers have been warned against building up credit. A 2% rise in borrowing costs would cost households an extra £1,000 a year.

A joint Pwc/YouGov survey reveals that more Scots intend to increase their savings (50% against 41% two years ago) and 41% say they will pay off their credit cards in full every month.

Among other findings in the survey Precious Plastic: How Britons fell back in love with borrowing is evidence that dependence on credit to pay for essentials such as food and household bills has fallen by half since 2013.

However, there are some areas of concern, not least an increase in borrowing to make ends meet among 35-44 year olds.

Steve Davies, Edinburgh based UK retail and commercial banking leader, PwC explained:

“We’re also seeing changes in the way people borrow. As well as a revival in old favourites such as credit cards, newer forms of borrowing such as peer-to-peer lending are also starting to gain ground, particularly among younger borrowers.

“Despite our survey revealing a relatively high degree of confidence among consumers about their ability to stay on top of their debts, affordability of the UK’s household debt pile may come under pressure in the coming years.”

Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.