Recent research from a state-backed website has suggested that more than half of all UK adults are struggling to pay bills and keep on top of their debts.
According to the study by the Money Advice Service, 52% of the 5,000 people polled said they are having difficulty. This is an increase of 17% from similar research seven years ago.
Throughout Scotland and the whole of the UK, people are having problems coping with managing their money. Firms are noticing it too, with one small businesses owner saying:
“At certain times of the month, trade moves from the restaurant to the takeaway.
“The money in your till goes from £10 and £20 notes down to £1 coins and £5 notes.”
Firms have had to adapt to this and, in turn, have had to cope with suppliers being unable to make good on their invoices according to the agreed terms.
Many firms are managing their cashflow through the help of invoice factoring and other asset finance facilities, however.
A Treasury spokesman said that while it recognised times were still challenging for families, the economy was in recovery. He went on to say:
“The Government has taken continued action to help households with the cost of living, including cutting tax for 25 million people by raising the personal allowance and freezing fuel duty.”
However, the shadow Treasury minister Catherien McKinnell claimed that the coalition’s economic policy had failed.
Another big concern coming out of the study for the Government will be the reticence by people to put money aside for emergencies and into their pensions.