Number of Scots seeking debt help up almost 50% charity warns

A charity has warned that debt is becoming entrenched in day-to-day living'' for many in Scotland after the number of people seeking help rose by almost 50% in four years. StepChange was contacted for help by 19,132 Scots struggling with money problems last year, a 47% increase from the total of 13,034 in 2013.

Across the UK almost 620,000 people sought help, the highest number in the charity's 25-year history.

The average unsecured debt of people in Scotland in 2017 was £12,488 - a drop of 1.5% from the previous year, but higher than both the 2014 and 2015 figure, with the latest annual Scotland in the Red report stating it reflected wider access to credit in recent years''.

The charity warned that Scots who got in touch had nearly 10% more debt than people across the UK, relative to their monthly income.

Depressed incomes and rising prices are significant factors behind the increasing need for debt advice,'' the report said.

On average, Scots who contacted StepChange last year had a monthly income of £1,253 - just £60 more than five years ago, with incomes having failed to keep pace with inflation.

After paying for housing, heating, food and other essential living costs, the average amount of money left fell from £24 a month in 2013 to £15 a month in 2017.

More and more clients are in debt because they are falling behind on essential bills,'' the report said.

So while the average amount of unsecured debt is smaller, it remains widespread and entrenched in day-to-day living for many people in Scotland.''

In areas where Universal Credit has been rolled out, StepChange said there was an emerging trend of clients reporting that reduced income/benefit income is the main reason they are in debt''.

Sharon Bell, head of StepChange in Scotland, said: Over 60% of the people we help are in debt due to circumstances they could not have prevented or planned for.

The rises in council tax, electricity, rent and mortgage arrears highlight how difficult day-to-day living has become for many Scottish households.

Keeping a roof over your head and heating your home are basic needs, yet for too many Scottish families these are constant worries. Even where families are not in debt, many are balanced on a knife edge, one setback away from problem debt.''

She added: Our latest research offers a vital insight into the scale of the problem in Scotland. Budgets are being squeezed by stagnating incomes and rising households bills. Our clients have to commit more of their money just to cover basic living costs.''

She urged anyone struggling with debt to seek impartial advice.

StepChange can be contacted free on 0800 138 1111 or online at www.stepchange.org