CAS: More than 280,000 people cite loss of income as reason for indebtedness

Reduced or lost income is cited by more than 280,000 people as the main driver of debt since the start of the pandemic, according to new analysis from Citizens Advice Scotland (CAS).

The charity’s analysis of a YouGov poll found that 161,071 people cited reduced income as a reason for debt, with a further 118,119 citing job loss and job loss completely. returned as reason.

The CAS said the figures showed the cost of living crisis must also be understood as an income crisis for millions of people across the country.

With rising energy bills and prices in shops, the charity warns that more and more people are at risk of going into debt.

The figures are part of CAS’ Debt Happens campaign, which aims to encourage people not to be the only ones facing debt and to seek advice from across the Citizens Advice network.

Jemiel Benison, CAS financial health spokesperson, said: “The cost of living crisis is also fundamentally an income crisis for people across the country, with hundreds of thousands of people completely citing the reduction or loss of income as a primary reason for debt.

“The end of the furlough scheme will have been a key factor here, as people were already facing a drop in income, and rising prices in shops and energy bills are making this worse.

“Debt is coming, and people shouldn’t feel alone. There is nothing to be ashamed of and the important thing is to seek advice quickly in order to get the help and support you need.

“The Citizens Advice Network can help people in a number of ways, such as our online resources such as the public advice site and the financial map tool. Local CABs are also there to help people.

“Some people will benefit from specialist debt advice which will lower their monthly payments, but for many others having more money in their pockets in the first place will help.

“Our advice is free, impartial and confidential and we encourage anyone who might benefit from it to seek it as soon as possible. Don’t let the bills and stress pile up, we’re here to help.