Debt levels have risen sharply since 2001

Figures from Citizens Advice Scotland (CAS) show that people who sought help with debt last year owed an average of �13,380 - a rise of 64% from 2001.

During the same period, the service said that the ratio of debt to income among clients rose by 78%.

The report, entitled On the Cards, highlights people on low incomes as the most vulnerable.

Citizens Advice said the new figures reveal that consumer debt is now the single biggest issue that people in Scotland bring to each of its 70 bureaux.

It said that last year its advisers dealt with new debt alone totalling �123m.

'Working poor'

Of those clients surveyed, 35% had debts of less than �5,000, more than 25% had debts of between �10,000 and �20,000 and 20% had debts of more than �20,000.

CAS chief executive Kaliani Lyle said: "Dealing with debt can have a devastating impact on people's lives.

"Our experience is that the vast majority of CAB clients do want to honour their commitments.

"However, this research suggests that some people will never be able to repay the substantial sums they owe, due to the sheer scale of debt."

There is clearly a need for greater consumer protection, particularly for low income clients Kaliani Lyle, CAS

Ms Lyle said many of those in debt have jobs but very low incomes and it was these "working poor" who struggled most to clear debts of a couple of thousand pounds.

Of those clients surveyed, 54% had monthly incomes of less than �800, and almost 24% had incomes under �400.

The report said that although many blame money-mismanagement or budgeting difficulties, a drop in income or low income were more prevalent causes than two years ago.

More than a third of clients cited easy access to credit as a reason for debt, while others blamed high interest rates or credit charges.

Ms Lyle added: "It is evident that extortionate credit, high charges, bad lending practices and disreputable recovery actions are not the preserve of a fringe group of lenders.