The Scottish Government is to create a free debt advice system after powers were devolved to Holyrood.

A report, published on Saturday, has been developed with help of the Tackling Problem Debt Group (TPDG) made up of existing advice services and local authorities.

Powers over the funding of debt services, known as the debt advice levy, were devolved to Scotland on January 1 this year.

The report shows 14.2% of people in Scotland struggle with problem debts with just 20% seeking advice.

It also claims growing numbers of people seeking help may have contributed to low staff morale and high staff turnover at current advice services.

Under the plans for the new system, the Scottish Government wants to make the process more user-centred, properly funded and staffed.

It has set out nine actions to ensure debt services work best for Scottish users.

These include driving technological innovation, working with the sector to provide multi-year funding to allow advice services to recruit more staff and plan for the future.

Business minister Jamie Hepburn said: "Problem debt can increase stress and strain on families and friendships and it often affects those who are already struggling.

"Sadly, these issues can become a greater strain at Christmas time.

"Early intervention can help mitigate the damaging effects of problem debt but people often delay getting help, or advice providers struggle to meet demand.

"This plan sets out our ambition to create a free debt advice system that responds to the needs of those who seek it, offers more joined up services and has adequate funding to survive and provide high quality services."

The administration plans to hold meetings with providers to streamline services and launch a marketing campaign, to raise awareness of the services on offer.

The Scottish Government has also pledged to assess projects launched next year "to ensure opportunities and challenges of this new approach are well understood".