Debt and the struggle to deal with it is a very personal battle and it is one many people don’t like to talk about.
It’s important to remember that you are not alone and that there are many helpful, friendly and non-judgemental people out there ready to offer advice and support, particularly for those people living in Scotland who are struggling with their debts.
It is entirely possible to deal with some debts independently but tread carefully and research how this should be done. You must work out accurately how much you can afford to pay your creditors and make the crisis debts your initial focus.
A priority or crisis debt is anything owing against your home or a debt that will soon lead to a court action for non-payment.
Negotiating with creditors
Negotiating with creditors requires you to provide them with exact information, reasoning and evidence of why you are making them the offer that you are.
They may push for a higher repayment, be unsympathetic or disbelieving. Should they refuse the offer it is difficult to stick to the budget you have set yourself.
However, do not be tempted to agree to pay back more a month than you can afford as the re-payment agreement will inevitably fail and you will be back to square one.
If these situations apply to you it is very important that you get advice from a specialist debt adviser such as Scotland’s Trust Deed and you should do this if:
- Court action is imminent and/or you are about to lose your home.
- You don’t have money left over from buying essentials such as rent, food and bills to make any re-payments.
- Your only income is from benefits.
Resolve your debt situation
Even if the statements above do not apply to you it is prudent to seek help even if ultimately you decide to negotiate with your creditors yourself to resolve your debt situation; the information and guidance they give can only improve your chances of a successful resolution.
For those who live in Scotland a trust deed could be exactly the solution you have been searching for and Scotland’s Trust Deed is a company that will offer a free, almost instant evaluation of your eligibility and will offer step by step guidance if successful and impartial advice on your next steps if not.
What is a Trust Deed?
So, what is a trust deed? A trust deed is a way for Scottish residents who are struggling with at least £5,000 of debt to regain control of their financial situation. It is one of the three most popular debt management options in Scotland.
The other options are a Debt Arrangement Scheme (DAS), which may be unaffordable for you, and sequestration (bankruptcy) which would be hugely disruptive.
In outline, a trust deed will allow you to pay back only what you can afford, have the rest of the debt written off and keep your home in a legally binding contract with your creditors.
Organising a trust deed is something that Scotland’s Trust Deed are experts at; negotiating with the people and companies who are owed money is tricky but our knowledge and skills mean that the vast majority of deeds are agreed to and become protected by law.
Debt management scheme
There are consequences and responsibilities involved in any debt management scheme, they are not to be entered into without careful thought.
Financial stress will be lifted and that’s a wonderful thought but the payments must be paid on time, your credit rating will be affected and you may be required to release equity from your home.
Should you believe that a trust deed might be your way forward, then contact Scotland’s Trust Deed and we will support you as you take your first steps towards a debt free life.