Scottish homes at risk of repossession

Fri, 06 Jan 2012

A high number of homes in Scotland are at risk of repossession, it has been suggested.

Gordon MacRae, head of policy at Shelter Scotland, explained people taking out payday loans are at risk of falling into financial difficulty as a result of agreeing to the deals, the Daily Record reports.

The industry figure was speaking as the homelessness charity warned around 100,000 Scots signed up to these arrangements in 2011, some with annual interest rates of up to 4,000 per cent.

Mr MacRae stated: "They can quickly lead to snowballing debt, repossession and homelessness."

And it appears low income families are also being hit hard by over-charging energy providers, as Save the Children estimated Scottish families at the lower end of the social scale are having to face a poverty premium of £1,280 a year that their wealthier counterparts are not required to pay.

The news comes after managing director of online property data network xit2 Mark Blackwell predicted home repossession numbers throughout the UK could increase significantly as a result of a rise in unemployment.

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