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11 November 2005
Debt is the most common problem presented to the Citizens Advice Bureau (CAB) in Scotland, according to a new report - and this may set the tone for the rest of the UK.
CAB branches in the country handled more than 50,000 queries relating to over £157 million worth of debt last year, which was a £27.3 million rise on the 2003 figure.
This far eclipsed disability benefits and employment conditions, the second and third most-queried areas, which concerned 28,000 and 27,000 enquiries respectively.
As a result, the Scottish CAB has noted that too many people are being offered credit or loan deals that they simply cannot afford, and has urged providers and the government to come up with a range of sources of low-cost credit.
Chief executive Kaliani Lyle said: "Debt continues to be the most pressing concern that people take to their frontline CAB. We are still seeing too many people who have been enticed into credit or loan deals that can lock them into debt they may struggle to ever repay.
"In many cases, poverty is the root cause. People on the lowest incomes, without collateral or security, can only access credit on the most expensive terms."
Ms Lyle said that people often need credit regardless of their income, and pointed out that poorer people are often backed into a corner by a loan provider because they simply cannot do without the money on offer.
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