MORE than a third of Scots are worried about the amount of money they owe and, with personal debt at its highest level for five years, it is no wonder many say it is affecting their mental health.

A survey for insolvency trade body R3 found 36 per cent of adults living north of the Border have debt concerns.

When asked the main causes of stress in their lives, 23 per cent cited personal or household finances, putting this at the top of the list alongside personal or family health issues (chosen by 24 per cent) ahead of work, relationships and UK or global events.

Tim Cooper, chair of R3 in Scotland, said: “No matter how old you are, where you live, or what you do, personal finance concerns – even concerns about others’ finances – have a significant impact on your wellbeing.”

Figures from the Money Charity show the average household now owes £56,460, which is equivalent to more than 144 per cent of their annual income – the worst picture since mid-2012.

According to price comparison website MoneySuperMarket, three-quarters of UK adults have unsecured debt in the form of personal loans, bank overdrafts or credit card balances, and a third of them admit to relying on credit to get by every month.

Over a third of those who owe more than they did last year put it down to the rising cost of living, including transport, bills and groceries. However, a similar proportion confess they have only themselves to blame as they overspend on luxuries, while a tenth said they are unable to control their spending.

However, Kevin Pratt, MoneySuperMarket’s consumer affairs expert, said there are “some simple steps people in debt can take to make sure they’ve got the best possible chance of paying it off”.

“For example, it’s important to shop around to make sure you’re paying the lowest interest rate you can,” he said.

“It’s also worth consolidating multiple expensive debts onto a low-interest personal loan. Rates are the lowest they’ve been in years so, if you’re struggling to pay off unsecured debt, this might be an attractive option.

“Another tactic is to transfer an outstanding credit card balance that’s charging interest to a card that charges zero per cent.

“What matters most is that you take a proactive approach to debt, to see if you can reduce the interest you pay and make inroads into what you owe.”

Someone with a good credit rating could borrow £5,000 over three years at under four per cent interest with no early redemption penalties from Ratesetter or Zopa. The same lenders typically charge just over three per cent for £7,500 for the same period.

MBNA, Sainsbury’s and Halifax all have credit cards that charge no interest on balance transfers for more than 40 months, with fees ranging from 2.29 to 2.99 per cent of the amount transferred.

However, when calculating how much you could save by making a move, remember to factor in any early-repayment penalties on your existing commitments.

Once you have cut the cost of your borrowing, work out a monthly budget, taking into account all sources of income and expenditure. Stop any unnecessary spending and allocate as much cash as you can to debt repayment. If you have not already done so, set up standing orders to control the amount you pay and ensure you never incur penalties for being late.

Use any money left at the end of the month to make additional payments to the most expensive debt, so you clear it as quickly as possible.

If you are struggling to keep up, let your creditors know. Write to them explaining your situation in detail and proposing how you would like to sort things out. This might mean asking for a temporary reduction in your repayments or a short break with an interest freeze while you get back on track.

In the meantime, do not succumb to the temptation to take on additional borrowing – this will only make things worse.

If you do not feel able to sort things out on your own, or you lenders are uncooperative, get professional help – but avoid debt-management firms. These exist purely to make a profit and will take a hefty portion of any renegotiated payment in fees, adding significantly to the time it takes to become debt free.

There are many sources of free, unbiased and non-judgemental assistance. Citizens Advice Scotland helps more than 300,000 people a year unravel their money problems. To find your nearest office, go to citizensadvice.org.uk/Scotland or call 0808 800 9060.

The Government-backed Money Advice Service also provides impartial support. To arrange a face-to-face or phone meeting, call 0800 138 7777. Its website, moneyadviceservice.org.uk, contains information on taking control of debt, budgeting and borrowing affordably.

You can contact debt charity StepChange at stepchange.org or on 0800 138 1111. The website includes a budget form to help you gather all the relevant information before making contact. A debt advice call takes around 40 minutes.

Alternatively, the National Debtline, at nationaldebtline.co.uk, mymoneysteps.org or on 0808 808 4000, and the Debt Advice Foundation, at debtadvicefoundation.org or 0800 043 4050, offer similar services.

Tim Cooper of R3 said: “Personal finance concerns are clearly looming large for many people across Scotland, and with inflation set to rise throughout 2017, these pressures are likely to increase.

“It’s essential for anyone who thinks their financial situation is getting out of hand to proactively seek help from a qualified source as early as they can, so that they can gain access to the biggest range of ways in which they can put things right again.”