More than half of Scots in or at risk of debt blame cost-of-living crisis

More than half a million Scots have put the soaring cost of living down as the main reason behind personal debt, new analysis has found.

Rising prices in the shops and a looming spike in energy bills have dominated the headlines in recent months.

A poll for Citizens Advice Scotland found that more than half of adults in the country in debt or at risk of debt since the start of the Covid-19 pandemic said the rising cost of living was the key driver.

Myles Fitt, the charity’s financial health spokesman, said the new analysis suggests that Scots “are finding themselves in debt though circumstances almost beyond their reasonable control”.

The YouGov survey of 1,001 Scots found 52% of adults north of the border are in debt or at risk of debt since the start the coronavirus pandemic.

Taking into account the country’s working age population, this amounts to 558,382 people, the pollster said.

Mr Fitt said: “Our message to people is that debt happens, and you’re not alone.

“It’s nothing to be ashamed of and the important thing is to seek advice quickly so you get the help and support you need.”

The Office for Budget Responsibility said last week that households are facing the biggest squeeze in living standards since records began in 1956-57, with inflation potentially reaching a 40-year high of 8.7% in the fourth quarter of 2022.

Energy prices are set to rocket next month, with the average home expected to pay £1,971 from the beginning of April as the energy price cap is increased.

And in more bad news for cash-strapped households, they could soon be paying even more to keep the lights on.

Higher wholesale gas prices could see the average household forced to pay between £2,500 and £3,000 for their energy supplies, according to early data, when the price cap is reviewed again.

Mr Fitt said Citizens Advice Scotland has launched a campaign encouraging people who owe money to seek advice from across its network.

“Some people will benefit from negotiated repayment schemes which brings their monthly payments down, but for many more getting more money in their pockets in the first place will help,” he said.

“Our advice is free, impartial and confidential and we’d encourage anyone who would benefit from advice to seek it as soon as possible. Don’t let the bills and the stress pile up, we’re here to help.”