Debt problems mounting up

Debt is a growing problem north of the Border

Record numbers of Scots are concerned about debt, according to the Citizens Advice Bureau.

The CAB said that over the past year more than 34,000 inquiries were made about dealing with mounting debt .

Employment terms and conditions were the next largest problem on their minds, followed by consumer goods and services.

Annual figures released by the Citizens Advice Bureau (CAB) show almost 10% of enquiries made to the service across Scotland last year related to debt.

CAB office: Record number of inquiries

Last year, 57 CAB offices north of the Border received more than 34,000 debt inquiries, totalling £60m.

The CAB has linked the rise to the aggressive marketing techniques of the credit sector.

In the past it has called on the government to do more to regulate the industry, claiming that it is often low income earners who are targeted.

In July, the government announced plans to cut the number of people exploited by unscrupulous lenders.

Scotland Office Minister George Foulkes said the government was determined to create greater transparency and break the chain of debt.

Debt directives

New government guidelines obliged lenders to take into account existing debt burden faced by borrowers, before awarding a loan.

For their part, CAB members are expected to vote on a more rigorous quality assurance scheme.

MSPs voted last year to change the system of debt collection under a members' bill introduced by Scottish Socialist MSP Tommy Sheridan.

They decided to scrap poindings and warrant sales by the end of 2002 when they backed his bill - against the wishes of the Scottish Executive.

Finance Minister Angus MacKay said it was important to make the distinction between people who could not pay and those who refused to.