Scots are less likely to struggle with their money than elsewhere in the UK, but the least likely to pay off their credit and store card debts in full each month, according to research from Chiltern Debt Management.
Only one in 12 Scots says their finances are a struggle compared to a UK average of one in nine and one in ten in Wales.
But Scots are the least likely of anywhere in the UK to pay off their credit and store card balances in full each month, and more likely than average to stick to making minimum monthly payments.
Nevertheless, one in eight Scots claims to be very comfortable with their finances, slightly higher than the nationwide average and almost double the number of Londoners who said they are very comfortable.
Chiltern’s Joanne Gill says: “Scots seem to think they’ve got their finances under control but our research suggests they could be storing up trouble for the future.
“Less people than elsewhere in the country say they are struggling or seriously overstretched, but a higher number than average only pay off the minimum balances on their credit and store cards each month – this means they will be in debt longer and pay higher charges.
“And only one in five pays off their credit card bill in full each month, this compares with one in two in East Anglia and an average of one in three across the country.
“Recent interest rate rises will hit people who are borrowing on credit and store cards and not repaying their balances quickly the most. If these debts become difficult to manage, Scots should seek help to make sure they don’t end up using credit to pay for the day to day necessities of life.”
Key Findings
• One in twelve Scots says their finances are a struggle (8.1 per cent) compared to a UK average of one in nine (11 per cent) and one in ten in Wales (9.7 per cent).
• Only one in five (22.1 per cent) Scots pays off their credit and store card balances in full each month, less than half the number in East Anglia (48.4 per cent) and compared to a UK average of one in three (37.8 per cent).
• 2 per cent of Scots say their finances are seriously overstretched compared to 2.2 per cent across the UK.
• 12.6 per cent of Scots say they are very comfortable with their finances compared to 7.1 per cent of Londoners and an average of 11 per cent.
Chiltern Debt Management provides an informal solution to help people manage their debts. This involves working with the customer to produce a budget detailing income and necessary expenditure, like housing, food, clothes, bills and transport.
The money left over, once living costs have been accounted for, is known as the disposable income. This is shared proportionately between the customer’s creditors until the client becomes debt free or a change in circumstances means they are able to resume contractual payments to the creditors.
Research Findings
Household finances by gender
| Gender | Struggling | Over-stretched | Paying in full | Minimum payments |
| Female | 14.2% | 2.0% | 36.9% | 11.6% |
| Male | 7.7% | 2.5% | 38.8% | 7.8% |
| Average | 10.9% | 2.2% | 37.8% | 9.8% |
Household finances by age
| Age | Struggling | Over-stretched | Paying in full | Minimum payments |
| 16 – 24 | 11.2% | 0% | 23% | 7.9% |
| 25 – 34 | 10.6% | 1.7% | 37% | 11.5% |
| 35 – 44 | 11.4% | 3.1% | 43.8% | 10.7% |
| 45 – 54 | 14.8% | 4.9% | 42.3% | 13.7% |
| 55 – 64 | 12.5% | 2.2% | 44.8% | 9.8% |
| 65+ | 6.9% | 1.4% | 36.1% | 5.4% |
| Average | 11% | 2.2% | 37.8% | 9.8% |
Household finances by region
| Region | Struggling | Overstretched | Paying in full | Minimum payments |
| East Anglia | 11.2% | 0.7% | 48.4% | 12.1% |
| Lancashire | 14.6% | 4.1% | 28.9% | 14.8% |
| London | 13.2% | 2.0% | 45.8% | 7.7% |
| Midlands | 8.1% | 1.1% | 35.6% | 10.2% |
| North East | 6.2% | 0.8% | 43.6% | 9.4% |
| Scotland | 8.1% | 2.0% | 22.1% | 10.1% |
| Southern | 15.4% | 1.2% | 42.7% | 10.6% |
| Wales | 9.7% | 3.9% | 36.2% | 6.9% |
| Yorkshire | 6.5% | 2.5% | 39.6% | 5.2% |
| Average | 11% | 2.2% | 37.8% | 9.8% |