Before worrying about this trend, let us first think about why the world is becoming this way. Is it because of poor global economy? Financial instability has hit a lot of countries, the UK included, and problems like unemployment, inflation, and poverty are sweeping across the globe. However, can we truly say that this is the only thing we can blame?
According to new sources, the UK is actually improving in terms of employment, although most jobs available are of low-quality and equally low pay. A lot of people in the UK are stuck with jobs they are overqualified for. Critics are now bashing the government for focusing too much on the GDP, which is on the rise, and ignoring other economic factors.
However, all in all, things are not looking bad for the UK, especially compared to other countries. Also, other parts of the UK are not as affected by bad credit as others. Orkney and the Shetlands, both islands in Scotland, came in with a 453.68 and 453.25 average credit rating respectively. According to interviews done by BBC News, it seems that people in Scotland are natural savers when it comes to money, and would rather borrow money from family and friends first before approaching financial institutions.
If so, does that mean that people are simply lousy at making financial choices? Do we spend indiscriminately and borrow casually? Is this simply a sign that we are bad at saving money and that we’re not good at making financial decisions.
If that is true, then more than bad credit services, we need personal finance management and guidance. We need services that help people right their financial wrongs BEFORE they suffer from bad credit. We also need to develop the industry that helps people recover from bad credit rating and teaches them to be more responsible in their financial obligations. Sure, there are a lot of factors that can’t be controlled, but if folks in Scotland still manage to save and stay on top of their credit scores, the rest of us can as well.