Nearly half of those living in Scotland believe their household financial situation will get worse in the next 12 months as debts have mounted during the cost-of-living crisis.

A new survey by YouGov carried out on behalf of the debt charity StepChange found that 47% of people in Scotland, equivalent to 2 million people, are worried about their financial situation. Only slightly less, 42%, predicted the their situation will deteriorate further in the coming year.

READ MORE: Cost of living: Third of Scots go into debt to pay for food

Furthermore, 44% said their current financial situation is worse than two years ago.

“We know the new year isn’t the easiest time for households and managing their budgets, but our latest research shows just how deep the impacts of the cost-of-living crisis are cutting," said Sharon Bell, head of StepChange Scotland.

"Households across Scotland are expecting their personal finances to deteriorate as the year goes on and when compared with previous years, many feel worse off, not better.”

Latest data from StepChange Scotland covering the final quarter of last year shows that 35% of the charity's clients were in a negative budget, meaning their income is not able to cover their essential living costs.

Of those responsible for paying rent, 24% were in rent arrears, up slightly from 21% in the first quarter of 2023. A third were in arrears on their council tax bills, and three in five (60%) face credit card debt.

Meanwhile, the proportion of clients in energy arrears showed little sign of going down. Among those responsible for these types of bills, 30% of clients were in electricity arrears and 25% were in gas arrears.

READ MORE: Money Advice Scotland charity tackles alienation and stigma

StepChange offers free debt advice to those struggling with their finances. 

"We have support on hand to run through your personal budget, assess your position, and proceed with the best option available," Ms Bell added. "It is always best to act quickly rather than to wait and suffer in silence.”