Rhoda Grant MSP “Shocked” at Skye, Lochaber and Badenoch Pay Day Loan Debt

19th November 2013

Highlands and Islands (Scottish Labour) MSP Rhoda Grant, has been leading the fight against pay day lenders across the region was “Shocked” to learn that the Skye, Lochaber and Badenoch, Scottish Parliamentary area has the second highest level of Payday Loan debt in Scotland averaging at around £2418.50, whilst the Scotland wide average is £1398.07.

Rhoda Grant MSP last month launched her anti pay day loan campaign “Debtbusters” at the Citizens Advice Bureau in Wick. The “Debtbusters” campaign is aimed at tackling the uptake of Payday Loans. These loans are one of the fastest growing industries in the country, and many companies have made a huge profit from exploiting the financial misery of thousands of people throughout Scotland. As part of the campaign, Rhoda Grant has distributed letters and debt surveys to homes across the north and is hosting her first debt advice surgery next month.

Following the publication of the ‘Step Change’ debt charity report “Scotland in the Red”, which looked at debt patterns across Scotland, the high debt levels in the Highlands have been laid bare. The report provides a breakdown of debt levels by region and constituency, examines levels of rent, mortgage, utility bills and council tax arrears – as well as summary of Payday loan debt, all set against the Scottish average for each category.

Using the information to establish the “top ten” worst constituency’s for Payday Loan debt in Scotland the Highland constituency of Skye, Lochaber and Badenoch takes the number two position.

Mrs Grant said:

“I knew levels of Payday Loan debt across the Highlands and Islands were high, however I am shocked to learn that constituents in Skye, Lochaber and Badenoch have the second highest levels of Payday Loan debt across the whole of Scotland.

“This is frankly tragic news as many people are taking out these loans to pay for the absolute basics such as food, gas or electricity bills and rent. In some instances people are taking out pay day loans in order to pay off the credit card that was used for the basics last month.

“As Christmas gets closer the financial pressure on families and individuals grows and this will push more people into debt. This is why it is crucial to make people aware of alternative lenders such as the Hi-Scot credit union who are able to provide loans at much lower interest rates than the legal loan sharks.”

END

Note to Editor:

Breakdown of the top ten worst constituencies for Payday Loan debt in Scotland:

Constituency
Payday Debt
Kilmarnock
2705.1
Skye Lochaber Badenoch
2418.5
Falkirk West
2293.11
Uddingston & Bellshill
2266.93
Airdrie & Shotts
2018
Aberdeenshire West
1961.67
Ed Eastern
1937.57
Donside
1932.48
East Lothian
1864.4
Cunningham North
1848

Scottish Average of Payday debt = £1398.07

A link to the full report can be found at http://www.stepchange.org/Portals/0/SIR%20report.pdf