Charity warns of personal debt crisis as lockdown help ends
Thousands of Scots are facing a personal debt timebomb due to the Covid-19 pandemic, according to Citizens Advice Scotland.
In a Scotpulse survey of 1,135 people, 27% of respondents were concerned about making debt repayments during the coronavirus crisis.
As the furlough scheme is reduced, debt payment holidays end and job losses become more significant, the CAS has warned of a large increase in the number of people who are unable to manage their debts.
CAS spokesman Myles Fitt said managing the situation would “require thoughtful and significant intervention”, with personal debt becoming a “real challenge.” He continued: “While concerns about unemployment have understandably replaced it for the time being, the issue of personal debt will become a real challenge in the coming months and years.
“Our fear is that many households will fall into unmanageable debt, causing financial hardship and pushing more people into poverty, or exacerbate existing poverty.
“An income shock from a job loss or reduced pay, combined with the cost of arrears such as council tax, housing or energy bills built up due to Covid-19 payment holidays, will put individual and household finances under extreme pressure,” he said.