The popularity of zero hour contracts has risen considerably in the last few years, but how much impact has this had on the population who are already feeling the crunch of the UK’s crippling debt?
How Are Zero Hour Contracts Affecting Us?
With no stable, consistent hours and more and more employers adopting this type of contract, being able to repay debts is becoming near impossible for some citizens. Having a zero hour contract does not guarantee any hours of work; you could go for weeks with no hours, or even get a 30 hour week followed by a week of no hours and no pay.
This uncertainty is making it particularly difficult for people to effectively manage their money, as they are unsure of when their next pay day will be. Even for people with no debt, this isn’t an ideal situation, so what about those who already have outstanding debts to pay off?
According to research* in 2014, it was found that 1 in 15 Scottish residents with an unsecured debt were spending over 50% of their wage on their debt repayments. These debts ranged from credit cards and catalogue debts, to payday loans and personal loans. This is a staggering amount of money for people who are unable to budget effectively when they aren’t guaranteed to have a regular income.
How Can We Budget?
Putting your basic human needs first is the most important aspect of debt management. Being able to pay bills and to put food on the table, as well as keeping a roof over your head by paying any rent or mortgages, is extremely important. If the fear of debt repayment is getting too much, there is always someone who you can talk to. However, your debts won’t just go away if you ignore them.
For an extensive directory of debt solutions in Scotland, our website has a range of debt management plans available, and our blog has a plethora of ideas on how to save money, helping make your wage go just that little bit further. This means that you can start looking towards the future without worrying about how your money pot is dwindling.
If you are worrying about your crippling debt and don’t know where to turn, Debt Advisory Services (Scotland) Limited are here to give you advice on how to tackle your debts and get yourself back on track. If you would like more information about any of our services, don’t hesitate to contact us by giving us a call on 0800 011 2322 and speak to one of our friendly team members.
*OnePoll questioned a nationally representative sample of 2,000 adults aged 18 and over between 6th June and 16th June 2014, of whom 500 were Scottish residents.