Funding pledge to debt projects

The executive is keen to help people out of debt

Projects giving advice on coping with debt have been given a £4m cash boost.

Deputy Communities Minister, Mary Mulligan, said advice services are crucial for many people - especially after Christmas.

The money will be targeted at vulnerable groups such as single parents, people from ethnic minorities and the victims of loan sharks.

Ms Mulligan outlined the details while launching an anti-debt project for South Ayrshire Council.

The authority calls its campaign "Sinking in a Sea of Debt."

She believes going into ther red causes misery for too many families who can find themselves overwhelmed and unable to cope.

Ms Mulligan said the new funding will pay for money advice in a number of settings, through communities and on housing estates.

At risk

"Debt causes misery and distress. People often find themselves overwhelmed, unable to cope or unsure at how best to tackle their problems."

She added: "Tackling debt problems early is key to keeping financially afloat.

" Encouraging people to seek help when they feel they are at risk of sinking into debt is just as important as when they are actually in debt."

Ms Mulligan said: " "I am very aware that some groups in society are more at risk. I met with people who work in money advice services across Scotland to hear their views.

"They told me of their concerns that work was needed to target those who are harder to reach, and I look forward to seeing the results of these projects."

The Scottish Executive has been providing £3m a year to tackle debt with 120 advisers in place across Scotland.

The new government Debt Arrangement Scheme will come into operation later this year and there is also a debt helpline.