New analysis from Citizens Advice Scotland has found that more than half a million Scots are putting the soaring cost of living down as the main reason behind personal debt.
Rising prices in supermarkets and on the high street, coupled with the upcoming 54 per cent hike in energy bills are putting extra pressure on household finances across the country.
And now a new YouGov survey of 1,001 people on behalf of the charity has revealed that more than half of Scottish adults, in debt or at risk of debt since the start of the Covid-19 pandemic, have said the rising cost of living was the key driver.
Citizens Advice Scotland calculated that by taking into account the country's working age population, this amounts to 558,382 people.
Myles Fitt, the financial health spokesman for Citizens Advice Scotland, said the new analysis suggests that Scots "are finding themselves in debt through circumstances almost beyond their reasonable control".
He continued: "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 per year 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 in October.
Citizens Advice Scotland has launched a new ‘Debt Happens’ campaign encouraging people who owe money to seek advice from across its network.
Myles explained: “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.
"Our advice is free, impartial and confidential and we encourage anyone who would benefit from it to seek it as soon as possible. Don't let the bills and the stress pile up, we're here to help."
You can get help in a variety of ways across the Citizens Advice network, from local CABs to the online resources online here.
You can also use the online Money Map tool to:
- Increase your income
- Reduce your bills
- Ease the costs of daily living
Find out more here.
To keep up to date with the cost of living crisis, join our Money Saving Scotland Facebook group here, follow Record Money on Twitter here, or subscribe to our twice weekly newsletter here.
