Creditfix is calling for an increase in funding for money advice services, following a reduction in spending of 15 per cent since 2014-15.
A recent report by the Improvement Service shows that only 17 per cent of over-debted individuals in Scotland are currently accessing debt advice services, and funding for money advice services has reduced by 15 per cent compared to the previous year.
Creditfix recently published statistics showing that Scotland has four of the top ten postcodes in the UK where the most people live in debt and are undertaking an Individual Voluntary Arrangement (IVA) or Protected Trust Deed (PTD). The ML postcode in Motherwell topped the list, with Kilmarnock (KA) second, Glasgow (G) third and Edinburgh (EH) seventh.
Pearse Flynn, CEO of Creditfix, said“Providing people with free help and advice is a vital starting point for supporting individuals struggling with personal debt. During such uncertain times with regards to the economy, I believe it’s of the utmost importance that people are able to easily access information about all of the options available to them if they are struggling with their personal finances.
“Our postcode statistics show that Scotland has a proportionally high number of people living in debt and undertaking an IVA/PTD, so it’s very worrying that investment in Government services to support individuals is being reduced.
“It’s important that people with debt problems tackle the issue head on, as the sooner individuals seek help, the easier it is to support and rehabilitate their personal circumstances. Reducing free advice and support could lead to more people brushing their debt ‘under the carpet’, often resulting in their finances spiralling further out of control.”