Caithness residents encouraged to get help with debt after massive rise in advice calls
Register for free to read more of the latest local news. It's easy and will only take a moment.
People struggling in Caithness have been urged to seek support for debt and money worries as the numbers asking for help soared over the summer.
Advice Direct Scotland (ADS), which runs the free moneyadvice.scot service, said it had seen a 68 per cent increase in calls from people seeking advice in the past three months.
The charity’s new Debt Truths campaign aims to dispel common myths about debt and credit scores, provide advice on terms or clauses to watch out for when getting into loan or credit card agreements, and encourage anyone struggling to seek independent help.
It stressed that there is no shame in reaching out for debt advice, with the charity receiving calls for help from people of all backgrounds and areas across Scotland.
Between May and July, the most common debt type that people raised concerns about related to credit cards, accounting for 22 per cent of all queries.
This was followed by gas and electricity arrears, making up 16 per cent of calls, while 12 per cent related to personal loans and overdrafts, 12 per cent about catalogue debts, and 11 per cent council tax arrears.
Over the three-month period, five per cent of queries were from people worried about their credit score and the impact of actions like entering debt solutions on their future rating.
moneyadvice.scot, which is regulated by the Financial Conduct Authority, offers support on a wide range of debt-related issues, with specialist advisers available to help anyone in Scotland assess their current situation, look at their income and outgoings, and consider what to do next.
ADS said a common concern for people is how their credit score is calculated.
It explained that information like age, marital status, race, religion, and salary are not taken into account, and it is instead evaluated on factors including a person’s payment history, the length of their credit history, number of accounts owned, the types of credit in use, and new credit.
moneyadvice.scot also advised anyone who may be applying for a loan to consider the following:
- Check your credit file – This can determine whether or not you risk being turned down by lenders or charged a higher rate of interest.
- Determine what you can pay on a monthly basis – Typically, a loan will be repaid over a period of one to five years, so look closely at your monthly finances before committing.
- Take time to understand the different types of loan available – This includes a ‘secured loan’ where an asset is used as security, or an ‘unsecured loan’ which is less risky for consumers.
- Find the best interest rate – Compare loan deals with a number of providers and be aware that the advertised rate may not always be the best.
- Consider the purpose of your loan – For example, is it for the consolidation of debt, to cover emergency expenses, or for a home improvement project?
moneyadvice.scot has dealt with more than £10 million worth of debt in this year alone, helping people with free, practical and impartial advice, and signposting sources of support.
ADS provides free information and support on a wide range of debt-related issues through its moneyadvice.scot service, which is authorised and regulated by the Financial Conduct Authority, and can be reached on freephone 0808 196 2316.
