PEOPLE in Scotland are the most worried in the UK about the impact of Brexit on their ability to borrow and on their overall finances, a survey has revealed.
Accountancy firm PwC’s latest Precious Plastic report shows 40 per cent of Scots are concerned about the effect of Brexit on their ability to borrow. As well as being the highest proportion in the UK, this is up significantly from last year. Meanwhile, 47 per cent of Scots are concerned about what Brexit means for their finances overall. And 11 per cent of Scots are now using credit cards to buy essential items month to month.
PwC’s report shows unsecured debt, amassed primarily on credit cards, student loans, car financing and overdrafts, has reached an all-time high of close to £300 billion, or £11,000 per UK household, growing at a faster rate than at any time in the past 15 years.
And the report projects unsecured UK debt will exceed £340bn, or £12,500 per household, before the end of the decade.
Shujaat Khan, PwC assurance director, said: “There are a number of mixed messages coming from this latest report. On the one hand, Scots are concerned about what Brexit is going to mean for repayments and any future borrowing, but many are still continuing to borrow and use their credit cards.
“Some people may be using their cards to get cashback offers, which would be a prudent way of shopping, but for the vast majority it may be that they feel they have no other option or income but to use their card.”
PwC consulting director Innes Ledingham said: “Car finance especially has grown by at least 15 per cent for each of the past five years.
“This represents the largest increase among the main unsecured lending products and may be an area that needs looking at in the future.”
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