The number of repossession orders in Scotland has increased

Shelter Scotland said its website and helplines had been overwhelmed by the huge number of people seeking advice.

The charity called on the Scottish Government to offer more support to households in debt.

A government spokesman said it provides a number of services to help people with housing and money problems.

The number of repossession orders in Scotland increased to more than 4,000 in 2006.

There were also 913 applications to be classified as homeless made because of mortgage defaults, a jump of 14% from the previous year.

There is strong evidence to suggest that mortgage default and repossessions in Scotland are an increasing problem James Jopling Shelter Scotland

Shelter Scotland said repossessions were largely the result of higher house prices, rising interest rates and bills, as well as irresponsible mortgage lending.

The charity urged the Scottish Government to take action to repair "the broken state safety net" that is failing to save many from destitution.

James Jopling, head of campaigns, said Shelter's web pages, offering advice on repossession, were visited almost 25,000 times last year.

"There is strong evidence to suggest that mortgage default and repossessions in Scotland are an increasing problem for many people," he said.

"Even just seeing a 42% increase in traffic to our website is an indicator people are already seeking help.

"With repossessions set to rise this year, we worry that, even though we provide advice online, on the phone, and in person, that we haven't got the resources to help everyone."

The charity is calling on the Scottish Government to develop a free advice service to stricken homeowners.

Council accommodation

It would also oblige mortgage lenders to provide details of the service to all customers.

Shelter revealed how one family turned to the organisation for help after they were left homeless following a business deal that turned sour.

Kathy, her husband, and four children, had to sell their house and move into temporary council accommodation.

"I never thought I would become homeless," she said.

"In fact many people looked at me as if I was crazy when I told them. They think being homeless means being on the streets.

"But we have been in our new tenancy for almost a year, and our children are making new friends. We are feeling more settled and secure."

A Scottish Government spokesman said: "There is no evidence of a need for a new advice service.

"Free, independent advice on both housing and money issues is widely available from existing agencies such as Citizens Advice Bureaux.