Unexpected Expenses the Number #1 Reason for Loans in Scotland

Whether we like it or not, the price of everything is going up. When this happens, we have less money for ourselves and when something unexpected comes along, we don’t have the extra cash to deal with the situation. This is why so many Scottish people are relying on loans to get through the month. When your car breaks down or your boiler stops working, you do not want to be waiting a month until you fix it, as we need our cars often for work and school runs and our boilers provide us with hot water. Here are the top unexpected expenses in Scotland.

Transport

Transport, both public and our own, are becoming more and more costly. For young drivers, insurance is so high these days that you can purchase a car for the same price as insurance. Public transport is increasing each year too, meaning even those who rely on this rather than a car to get to work will have to pay more. We all rely on our cars a lot and when these break down or need fixing, we want to be back on the road as soon as possible. Many of us may not be able to get to work without a car and for some, their car is part of their business, such as taxi companies.

According to the Consumer Index, in September 2017, transport contributed to the CPIH 12-month rate by 0.5%, and it went up again in 2018 to 0.68%. For those solely reliant on their car but with no money to fix it, a loan can be their only option at the time. You can see some interesting stats about loans for short term car repairs in the cashlady consumer index.

Bills

Housing and household services contributed massively to the CPIH 12-month rate according to Consumer Index, going up by 1.2% over the last two years (2017 and 2018). This includes anything from rent to gas and electric. Rent prices are forever increasing and this is why so many young Scottish and UK residents are moving back in with their parents or still renting, rather than being able to afford their own house. It is becoming almost impossible to save whilst paying rent in most places, making it harder and harder for anyone to get a mortgage.

As bills increase, the risk of unexpected expenses increases too. When our bills increase over the month, we may not have enough to pay them, leading to energy suppliers cutting off our power.

There are ways in which we can take control of our bills. For example, many providers now offer smart meters, so we can see exactly how much we are using, so we have less chance of getting an unexpected bill at the end of the month. Many Scottish people also rely on credit meters, which you can top up as and when needed, meaning bills will not be coming out of your account each month.

Health

Although we are lucky enough to count on the NHS when we are ill, there are still lots of unexpected expenses that come with this. Most of us cannot afford to have sick days, and with this comes less money to pay for our bills and food. We also must pay for our prescriptions and medicines, which can all add up if we are sick over a long period of time. Our health does need to come first though and many Scottish people have been relying on loans when they have become unexpectedly ill.

Unfortunately, we cannot do anything about becoming ill or needing to spend time in the hospital, and if we do not have any other source of income, loans can be many people’s only option. This also includes unexpected bills such as those from the dentist, as most Scottish NHS patients still must pay towards their dental treatment. For those who have an emergency dental appointment, this unexpected expense could contribute massively to how much they have left for the rest of the month.

We are all going to go through a time where an unexpected expense hits us hard. This can be worrying, especially if you have other things to pay for and have others that rely on you. Transport is the biggest unexpected expense in Scotland and the UK, with motor vehicles costing the most to maintain and fix. Unexpected household bills are another hard hitter, as the risk of facing penalties for not paying on time can be extremely worrying for a lot of families. Our health is also another reason we may turn to a loan company, as this is usually a necessity, especially those with dental emergencies.

The best way to be ready for an unexpected expense is to have money saved up, but unfortunately, many Scots do not have the extra income to do so.

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