Debt Levels Soaring across Scotland, New Figures Show

Levels of unsecured debt in Scotland increased dramatically during 2022 as the cost of living crisis took its toll on household finances.

Throughout the country people have found themselves under a growing amount of financial pressure and, for many, that has meant taking on more and more unsecured debt.

In fact, according to the debt help charity StepChange, unsecured debt levels among its clients in Scotland increased by as much as 27 per cent last year.

The organisation’s figures show the average person reaching out for debt advice in Scotland during 2021 owed £12,730 each but by 2022 that number was up to around £16,174.

Fundamentally, the issue is that while people’s incomes typically increased by around 10 per cent during 2022, their essential outgoings were driven upwards at a significantly sharper pace over the same period.

Because of those pressures, Scots have generally found it more difficult to balance their budgets in recent months, which in turn has seen many more people relying on debts to cover their costs on a monthly basis.

Rising energy bills were a particularly important part of the picture across 2022, with those bills eating increasingly into the budgets of households right across the country.

Notably, StepChange has also said that a growing number of middle-earning Scots are now finding themselves facing difficult debt problems and reaching out for advice on how best to deal with those issues.

As of March 2023, just over a quarter of all new StepChange clients count the rising cost of living as the main reason why they’re having problems managing their debts.

“Looking at our clients’ finances from 2022, it’s clear this crisis is sweeping a wider pool of people into financial difficulty,” observed Sharon Bell, head of StepChange Scotland.

“For the most financially vulnerable households, the struggle of keeping up with the cost of essentials is nothing new, but after the pandemic and many years of stagnating wages, the safety nets to catch people affected by a sudden jump in inflation are simply not there,” she added.

If you live in Scotland and you are struggling with debts then Scotland Debt Solutions can help. Contact us directly to arrange a FREE and confidential consultation.