Rising tide of debt is

Region has seen rise of more than 11% in people’s average levels of liability

Shock new figures have revealed Perth’s rising debt levels are out of step with the UK average

Worrying new figures reveal the average level of debt held by residents seeking help with their finances is £16,265 in Courier Country.

Perth is in the grip of a far greater debt crisis than the UK average, with its average personal level of £16,598 representing an 11.3% rise in unsecured debt.

This includes bank loans, credit card charges and payday loans, amounting to almost 10 times the national average.

During the July to September period studied by the UK Personal Debt Index (PDI), the national picture showed an average increase in reported debt of just 1.67%.

The statistics show Perth people have £16,598 personal debt on average, similar to Fife’s £16,129, which is a 5% increase.

Angus, has a higher average debt at £20,243, but this has decreased 2%. Dundee’s £12,092 is an 8% dip.

Pearse Flynn, executive chairman of personal insolvency practice, the Creditfix Group, said it was “troubling” to see so many people struggling with their personal finances in “such an unpredictable economic climate”.

“People are being forced to borrow more, often just to make ends meet,” he said.

“The ease, availability and widespread access to credit from banks and credit card companies is only facilitating this cycle.

“With so many people relying on debt, we could be headed for troubling times if the UK economy struggles and lending is reeled in.”

Mr Flynn suggested part of the reason for reaching high levels of personal debt is because of spending incurred during the summer season.

“The summer months can be a very expensive time for many people. With children out of school, lots of parents will have had to pay for additional childcare,” he added.

“There are also vacations and family trips to pay for, so seeing some people’s personal debt levels increase is not a huge surprise.”

In April, the Poverty Alliance said many people in the Perth and Kinross area were falling behind on bills, rent and mortgage payments, leaving them in danger of losing their homes.

It revealed many of those individuals were in work – in low wage roles – and were supporting families.

Groups such as Perth Citizens Advice Bureau and Christians Against Poverty have revealed they are helping people with record levels of debt.

Perth CAB reported it was “working to capacity” as its staff attempt to offer a way out for local people whose households have been plunged into ill health by the strain of paying for even the basics, such as rent, council tax or fuel.

John Swinney, Deputy First Minister and Perthshire MSP , said: “The Scottish Government has put in place a number of measures to help people affected by debt.

“The Bankruptcy and Debt Advice (Scotland) Act 2014 included a range of measures designed to provide support to those in financial difficulty.

“While previous figures indicated fewer people across Scotland going bankrupt, it is concerning that these statistics show an increase in the levels of personal debt in Perth.”

The quarterly PDI details were compiled by Creditfix following a survey of more than 60,000 individuals across the country.

With so many people relying on debt, we could be headed for troubling times if the UK economy struggles and lending is reeled in. CREDITFIX GROUP

It is hard to say if it could affect me at the moment. I suspect they are raising it to lower it again when Brexit comes in.” Kevin McGinley, 42.

It’s outrageous. It’s affecting aspects of everybody’s life. It is not what we want to hear. Pauline Morton, 60.

As a senior citizen our savings are suffering. Interest rates on savings are a laugh.” Ron Keiller, 75.

I worry about my son, Gary, who has completed a PHD. He is looking for a job so he will be concerned about the likes of a possible rise in interest rates. Audrey Hutchison, 57

I am studying carpentry and joinery at Perth College UHI so hopefully that will help my financial situation once I finish the course. Connor Wojtowicz, 23

I know of people who get themselves into debt by borrowing money when they are living on benefits and that is wrong. Phil Hannah, 65

Iliketoalwayshavesavings. I amworriedaboutpoliticalchanges asyouneverknowwhatcanhappen. Pat Clegg, 75.

Myhusbandleftmeinloadsof debt. Ihavecreditcarddebtsand loansforthousandsofpounds. Maggie Boyd, 49.

I try not to use credit cards or anything. It’s a slippery slope. It’s good to try and stay in control. Coral Boyd, 21.

I’m glad I’m not young now, I feel for my grandchildren. My daughters will have to work until 67. Janette Puddifoot, 70.

Things are more expensive, so you can’t do as much as you used to. I think it’s going to get worse. Jacqueline French, 53

IhelpafoodbanksoI’maware therearepeoplewhohavemore andmoreproblemsrightnow. Ken Mowbray, 72.