THAT more Scots are going bankrupt, as covered in the main story on this page, is no surprise. If anything, the figures don't even come close to reflecting the extent of the personal debt problem in Scotland.
Rule changes introduced earlier this year are a big driver behind the sharp rise in sequestrations (the Scottish equivalent of bankruptcies) but the economic downturn may still be in its infancy.
If that's the case, the number of bankruptcies coul
d go much higher before stabilising. This is because people struggling with debt problems typically keep it to themselves and wait at least a year before seeking help, if they do so at all.
Older age groups are particularly reluctant to admit to debt problems and that's one reason why the situation is so severe for the over-50s.
Many people feel that debt is a stigma, something that should be kept private and sorted out without external guidance.
This only makes matters worse. If you are having problems managing your debts, there are numerous sources of free advice, details of which are on the facing page. The biggest step you can take to help yourself is to recognise that you are struggling with debt and talk to the people that are there to help.
IT'S safe to say I'm no fan of Tesco. I'm uncomfortable with its monopoly over the UK grocery market and its practices concerning farmers and its own employees, not to mention its impact on small businesses.
But it recently announced an initiative that I hope other companies will follow.
In making financial information and advice more accessible for its workers it is hopefully paving the way for corporations to play a more active role in improving their employees' understanding of money management.
That we desperately need personal finance education to be ramped up massively not only in schools but elsewhere in society is obvious.
So some of the steps taken by Tesco (and it's not alone in this, just the most high-profile) can make a useful difference to their employees financial welfare. For instance, all of its staff have been sent the Financial Services Authority's guide to the basics of personal finance and it is personalising the benefits reports it sends out to workers, making them easier to understand and practical.
Aegon UK chief executive Otto Thoresen's review of generic financial advice earlier this year identified companies as having a key role to play in financial education. And the deterioration of the economic environment, piling on the financial woes for millions of workers, gives companies a chance to grow the loyalty of their staff by playing a bigger role in helping them through these difficult times.
Giving people the tools to manage their finances more effectively offers huge long-term advantages not only for individuals, but for companies, UK plc and the financial wellbeing of society as a whole. So I'll grudgingly admit that Tesco has got it right, this time.
THE average house price fell from £197,698 last October to £168,176 last month, according to the latest figures from the Halifax. Of course any significant house price falls can be alarming for homeowners, especially where they make negative equity a realistic prospect.
But there's one very important figure that puts it into perspective: the average UK house price is still 22 per cent higher than it was five years ago, when it was £138,208. House price increases over the past decade have taken valuations out of the range of most first-time buyers and inflated expectations unreasonably. Falls of the magnitude experienced in the last few months were overdue and prices need to drop further before valuations are at reasonable levels again.
The full article contains 627 words and appears in The Scotsman newspaper.
