More than 31,500 people in Scotland sought support from StepChange Debt Charity during 2020.
And more than 11,000 went through a full debt advice process last year as the pandemic impacted people’s finances, according to the charity’s latest Scotland in the Red update.
Average client rent arrears rose 43%, which StepChange said was one of the most worrying financial consequences of Covid-19 and a “very clear warning” that continuing support will be vital for many households if recovery from post-pandemic debt is to be achievable.
StepChange highlighted a YouGov poll showing thousands of Scots struggling with debt and behind on essential bills like council tax and rent. More than one-fifth are using credit to make ends meet and cover basic living costs.
Around one in 10 StepChange clients explicitly identified Covid-19 as a reason for their financial difficulties, despite government and regulatory intervention and temporary additional support.
The most common debts held by clients were credit cards (70%) and loans (53%). In terms of household bills, significant proportions of clients were struggling with council tax (43%), rent and utilities.
Around of half of those seeking help had some form of additional vulnerability as well as their problem debt.
Sharon Bell, head of StepChange in Scotland, said: “The past year has presented households with unprecedented challenges, thrown those just getting by into real financial difficulty and exacerbated the difficulties of those who were already struggling.
“It is particularly concerning to see so many households with additional vulnerabilities needing help.
“It’s really important, as the country begins to look towards some light at the end of the tunnel, that concrete steps are taken to support households in problem debt who will feel they are facing a bleak financial future.”
“It is particularly concerning to see so many households with additional vulnerabilities needing help.
Sharon Bell, head of StepChange in Scotland
She added: “We are making important recommendations that would help those households.
“We want to see the Scottish Government build on its actions to date to ensure that any recovery does not leave financially vulnerable households behind.
“That should involve putting some of its emergency measures onto a permanent footing.
Support for those struggling ‘sorely needed’
“Support needs to be identified for those struggling with essential costs like rent, utilities and especially council tax, where improvements to debt management practice are sorely needed.
“The good work already achieved under the Debt Advice Routemap needs to be extended, and a cross-government strategy needs to be adopted to address not just post-crisis debt solutions, but also the underlying drivers of debt.”
StepChange is the UK’s largest debt advice charity, contacted by around 600,000 people a year and providing free, full, independent debt advice to more than 300,000.
Founded in 1993, the charity supports people experiencing debt problems through telephone and online services, and campaigns for change to reduce the harm and stigma associated with debt. Its helpline number is 0800 138 1111.
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