Scotland experiencing low levels of financial optimism, report finds
A quarter (24%) of Scots are terrified for their financial future, according to subscription loan provider Creditspring.
Data shows that Scots are less optimistic about their finances when compared to other UK regions with both Glasgow and Edinburgh ranking in the top five most financially unstable cities, with financial instability scores of 21 and 20 respectively.
In fact, 29% believe there is nothing they can do to improve their financial situation, and over a quarter (26%) say that their bank does not do enough to help them manage their money effectively.
With one in ten (12%) Scots claiming they will need to borrow money to get by in the next six months, credit will be essential, and several will inevitably turn to high-cost lenders. In fact, 27% of Scots have borrowed money to keep the afloat since the start of the pandemic and 9% have already taken out high-cost credit, such as payday loans.
However despite this reliance on credit, one in five (19%) Scots are unaware of how to improve their credit score. Support for this demographic in building their credit score and in accessing responsible, affordable credit will be crucial in the coming, uncertain months, particularly as nearly a third (31%) are unaware of what financial position they will be in in six months’ time.
Neil Kadagathur, co-founder and CEO of Creditspring, commented: “As people in Scotland emerge as among the most financially unstable in the UK, it is crucial that they receive adequate support to restore their financial health – support which they feel they are largely lacking at the present time. As they increasingly rely on credit, accessible and affordable forms of credit must be made available to them, so they don’t have to turn to unscrupulous, high-cost lenders which could trap them in a cycle of debt.”