Glasgow, Lanarkshire -- (SBWIRE) -- 12/18/2013 -- As we are nearing the end of 2013, a lot of people tend to reflect on the past year. The main worries are - not surprisingly - focused on personal finances. Debt is becoming an increasingly worrying problem for a lot of Britons.

United Kingdom
Recently it was reported that more than 9 million across the United Kingdom are in serious problems regarding debt. The Money Advice Service (MAS), that is part of the British government, conducted a research into the financial situation of British citizens. The report that was subsequently published showed that more than 18% of Britons, over 8.8 million, consider they have serious financial problems.

The report of MAS also showed that those that struggle with debt have a much higher chance of being unhappy: 74% of Britons that are currently in debt experience unhappiness. MAS furthermore states that this might be the result of less and less people asking for help. "Millions of people could escape their spiral of debt by accessing advice," said Caroline Rookes, the chief executive of MAS.

The situation across the United Kingdom is apparently the grimmest in five big cities in England. The situation in Hull is worst: 43.1% of the residents of Hull admitted that they are in financial trouble. Other places of which the people feel that they are in financial trouble are Nottingham (41.2%), Manchester (41.1%), Knowsley (40.7%) and Liverpool (40.6%). All of these cities have over 40% of people that are actually in heavy debt.

Recent statistics have shown that across the UK, the level of borrowing is back at the level it was at during the pre-crisis peak in September of 2008. Recent research from Legal & General indicated that the increasingly higher costs of living are leaving an estimated 3.5 million households to fend for their own. These households currently do not have enough income to cover their monthly bills (a rise of 30% from 2.7 million households last year).

Scotland
The problem for Scotland might be even direr than it is in the UK in general. Over 24% of Scots will find themselves in debt with regard to the upcoming Christmas holidays. According to a recently held survey, this is more than is expected amongst English people (17%) and the residents of Wales (20%). Over 13% expect to use up more than £1,000 this year: 62% confess that they feel they are overspending.

Margaret Lynch, CEO of Citizen’s Advice Scotland, indicates that the problem has not only to do with the willingness of Scots to (over)spend money. “Debt continues to be a living nightmare for too many Scots. For years now the cost of living has risen steadily, while household incomes have stayed level or have fallen.” This trend, which goes hand in hand with the economic crisis, is the core of the problem for many Scots. While many Scots struggle to maintain their job, inflation and rising costs erode the financial foundation of many households.

A Spokesman from Debt Advisory Scotland states that “many people in Scotland feel that they are alone in their debt, and that there are no real parties to step up and help. This is a misunderstanding: there are a lot of companies that specialise in debt advice, which can help get out of the vicious cycle. And as soon as you are back on the path of debt relief, there is light at the end of the tunnel. We see people getting more happy, and eventually getting their life back on the road. It’s not only pessimism that rules the country.”

The introduction of the Debt Arrangement Scheme in Scotland allows Scottish residents to reduce their monthly payments and freeze interest and charges, this means that payments made to creditors are going to reducing the bulk of the debt rather than added fees.