An increasing number of Scots are struggling to pay their mortgage or council tax bills due to the cost of living, a debt advice charity has warned.
StepChange said it had seen a sharp rise in people falling into arrears over the last three months compared to the same quarter in 2023.
The charity said 21 per cent of its clients with a mortgage were now struggling to make payments, up from 14 per cent last year. A total of 36 per cent were falling behind with their council tax bills, an increase of three percentage points.
The organisation said January was a challenging month for many people financially as Christmas expenses were paid off.
But it said persistently high energy costs were also continuing to hit many Scots in the pocket.
Despite energy prices falling from their peak in 2022, average household bills remain higher than before the cost of living crisis and those with built up energy debt continue to struggle to pay it off.
Sharon Bell, head of StepChange in Scotland, said: “Unfortunately, the New Year can be particularly hard for people struggling with problem debt – Christmas puts a lot of pressure on our finances and January itself often proves to be an expensive month.
“This is a time when we see more people than usual coming to the charity seeking help with their finances. However, this January we’re also faced with a rise in the energy price cap and the same steep costs for rent, mortgage and council tax bills that have dominated the past few years.
“We’ve already started to see the proportion of clients coming to us with priority debts like energy and council tax creep up, so it’s important that both the Scottish and UK Governments ensure financially vulnerable households are properly supported.
“If you are worried about debt this January, or at any time, it’s never too soon to reach out for help. StepChange offers free and non-judgemental advice online, with expert advisors on hand to support over the phone. You don’t have to suffer in silence if you’re dealing with problem debt.”
A YouGov poll commissioned by StepChange last month found one in four people across the UK would struggle to afford Christmas.
That meant around 14.5 million people were concerned about their finances over the festive season, an increase of 1.6 million year-on-year.
StepChange said more than half of the people it helped with debt advice were already in work, with 47 per cent living in households with children.
Paul McLennan, the SNP Housing Minister, said: “It is vital that people have access to advice services, especially in the face of household debt.
“The UK Government could have made use of its recent budget to take action to help make people’s mortgages and energy bills more affordable, but chose not to do so.
“The Scottish Government’s draft Budget Bill for 2025-26 includes over £12.8 million for the provision of free income maximisation support, welfare and debt advice, an increase on our allocation for these services in 2024-25.
“We know that seeking advice can help to prevent problems from escalating and can help people to access the help, support and services they need.”
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