Check If You Qualify

Rising Costs Pushing More Scots into Problem Debt

Sharon McDougall - 26th January 2023 - 2 minutes to read

Rising costs across the economy are pushing more and more Scots into problem debt situations, according to a new piece of research.

The debt help charity StepChange has said that the cost of living crisis is now the leading reason why its clients across Scotland have been reaching out for advice and guidance in recent weeks.

According to the organisation, cost of living pressures were the leading cause of debt for 23 per cent of its new clients in Scotland during the fourth quarter of 2022.

That figure is significantly higher than the corresponding number for the first quarter of last year, when only 10 per cent of people cited price rises and cost of living pressures as their primary financial problem.

Notably, StepChange has said that among its new clients in Scotland, energy debt recently overtook council tax debt as the most common type of arrears.

Indeed, between the first and fourth quarters of 2022, the proportion of StepChange clients in Scotland with electricity debt increased from just over a quarter to well over a third (36 per cent).

With the Bank of England’s base rate of interest having increased recently, expert advisors have also seen an uptick in the number of homeowners who find themselves needing advice on their personal debt problems.

StepChange has said that both the Scottish and UK governments need to focus more attention on helping low-income households cope with the financial pressures they’re increasingly under as the cost of living continues to rise.

“We are seeing incredibly high client volumes at the moment, and while a seasonal upturn in demand for debt advice is normal in the new year, such high demand may be an indicator that people’s ability to keep up with the huge price rises we saw last year is waning,” explained Sharon Bell, head of StepChange Scotland.

“We’re urging the Scottish government to work alongside public bodies to take a measured approach towards debt enforcement, reducing harmful practices that push people into further financial difficulty,” she added.

If you live anywhere in Scotland and you are worried about your personal debt situation then Scotland Debt Solutions can help. Contact us directly to arrange a FREE consultation.

facebook colour icon linkedin colour icon messenger colour icon whatsapp colour icon email colour icon
Sharon McDougall Square

Sharon McDougall

Manager

Other News

Debt Levels Soaring across Scotland, New Figures Show Debt Level Rising

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.

Nearly Half a Million Scots Facing ‘Profound Financial Hardship’ Financial Hardship

Nearly Half a Million Scots Facing ‘Profound Financial Hardship’

Close to half a million Scots are in a position of profound financial hardship, according to a new set of figures.

Scots with Disabilities Urged to Check Eligibility for New Benefits Scottish Man In Wheelchair

Scots with Disabilities Urged to Check Eligibility for New Benefits

Disabled people in Scotland are being urged by the government to check whether they might be eligible for benefits that could help make their life a little easier.

About

Why Choose Us

Usp Location

5 Offices in Scotland

National Coverage

Usp House

Ask us About

Home Visits

Usp Hand Heart

Helping Scots Get

Out of Debt Since 1989

Usp Handshake

We offer an

Instant Initial Consultation

Usp Palm Wallet

We'll Help You

Lower Monthly Payments

Usp Hand Heart

HELPING SCOTS GET

Out of Debt Since 1989

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.

Tools

Useful tools

Personalised Debt Report
Usp Planner

Personalised Debt Report

Our personalised debt report will help you better understand your financial position and see where your money is going.

Debt Report
Instant Scheduled Call & WhatsApp
Headset

Instant Scheduled Call & WhatsApp

Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.

Arrange Callback
Find a Local Office
Usp Signpost

Find a Local Office

We have five offices located across Scotland. Find your nearest one here.

Find an Office

Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority

Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.

ICAS Insolvency Practitioners