The 12 years of Christmas repayments - Scotland

John Hall, chief executive of the personal debt solution company- newtomorrow.com, said:

“These figures aren’t surprising and the underlying position is much worse than the figures suggest.

“There is a dam waiting to burst and the cracks are starting to appear. The reason the figures are not higher still is that lenders are making it more difficult for their customers to put a voluntary debt solution in place by insisting on unachievable repayment levels, resulting in significantly more house repossessions.

“In recent weeks however, there have been indications that lenders are starting to recognise the true scale of the problem and we expect a significant upturn in voluntary debt solutions in 2008.

“No matter how bad the situation seems, people mustn’t brush their problems under the carpet. There are always steps which can be taken which don’t have to lead to bankruptcy or additional debt but people should take advice as early as possible.

“This is a stark message that people need to be realistic about what they can and can’t afford; especially as we are approaching Christmas and people feel under pressure to splash out on presents.”