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  • The peak age for borrowing revealed   

    While growing numbers of Scots are struggling with debts at various times in their life, a new survey reveals that the peak age for borrowing is 35.

    According to an online price comparison website, this is when the costs for bringing up children combined with car and mortgage repayments as well as weddings and holidays takes their financial toll.

    However, there’s also a growing trend for the over 50s to take on debt to help fund their chosen lifestyle.

    One financial services provider says that more than half of those aged over 50 are no longer as cautious with money as previous generations and one in five who are working say they are borrowing to pay their bills.

    Indeed, a debt charity says that with the growing use of credit, growing numbers of people are now struggling to repay their debts.

    One leading charity says the second most common issue their team deals with is for debt advice.

    The issue of debt

    While the issue of debt accounts for nearly 30% of all their requests, the number one spot is still taken with benefits and tax credits problems.

    While the surveys highlight just how hard life can be, a mortgage firm says that around 1.4 million households in the UK are currently having difficulties in meeting their mortgage.

    That’s not including the 2.6 million households who believe they are paying too much for their mortgage and yet 58% have never remortgaged in a bid to find a better deal.

    The firm has worked out that they are overpaying by around £2.78 billion every year so rather than struggling on a standard variable rate, homeowners should be looking for a discounted deal or a cut price fixed deal.

    This will see their mortgage repayments being drastically reduced.

    To put this into perspective, a homeowner could find a fixed rate of less than 2% on a two or three-year deal rather than paying a 4.5% standard variable rate.

    For those who have a £100,000 loan, they will save around £1,800 every year simply by switching mortgage providers.

    75% of us have unsecured debts

    On top of this, 75% of us have unsecured debts including a bank overdraft, personal loans and credit cards.

    Also, many of us are paying far more than we need to in charges and interest.

    The debt charity warns that people should be wary about unauthorised borrowing which can lead to hefty charges as a result.

    They say that most banks are charging around 19% for an unauthorised overdraft and for accounts with interest-free borrowing there can be a daily fee of up to £1.

    There are online comparison websites available but there are also good offers from banks and credit cards for fee-free balance transfers.

    A spokesman for the debt charity said: “Debt is pervasive in Scotland and people need to know their rights in relation to debt and the options they have to manage their finances.”

    Debt advisers at Scotland’s Trust Deed

    Along with price comparison websites and debt charities, people who are living in Scotland and struggling with their finances can also seek help from a team of debt advisers at Scotland’s Trust Deed.

    With extensive experience in helping lots of Scots deal with their debts, the team can give advice on a range of solutions.

    These will include the debt arrangement scheme, which is run by the Scottish government, as well as a trust deed.

    While both of these are legal agreements, the big difference is that under a debt arrangement scheme all of the debt will be repaid while under a trust deed a proportion of the debt will be deemed as unaffordable and written off.

    There are pros and cons for all debt solution routes and the team at Scotland’s Trust Deed will be able to offer sound advice.

    It’s also important to appreciate that the advice is impartial and those who contact the team do not have to undertake the advice or even sign up to a debt solution plan.

    The aim for Scotland’s Trust Deed is to continue helping growing numbers of Scots struggling with their debts to get into sound financial health and the debt advisers are available to speak with every day.

  • For Scots in debt times are getting harder   

    While the news about the growing cost of living may be boring to some people, for growing numbers of Scots in debt it means they have less money to spend.

    A charity report also highlights that with soaring prices putting household finances under greater strain, debts are also growing.

    Now, they say, is the time to reduce significantly the cost for Scots struggling with their debts.

    A report from the Office for National Statistics reveals that because of inflation, over the past year the real value of people’s earnings has dropped by 0.6%.

    Indeed, a spokesman for investment firm Scottish Friendly said: “With inflation rising to 2.9% means there is no end in sight for people struggling as they see prices rise but wages failing to keep pace.

    “It is no surprise that people are reigning back on their spending or turning to credit, in many cases, to get by as our everyday living becomes more expensive.”

    People who are struggling with their finances

    However, the people who are struggling with their finances aren’t just those without work and living on benefits, a number charity reports reveal that for many working Scots there is a growing problem in making ends meet.

    Indeed, their reports reveal that many Scots would struggle to pay an unexpected bill and growing numbers are turning to friends and family for financial help.

    Another report from an investment firm says that in the first three months of 2017, adults in the UK took on debt worth on average £560 each.

    Also, a loan comparison website says that the average borrower will borrow more than £309,000 during their lifetime which will include an interest bill of £111,000.

    On top of this, another charity says that the average balance on a mortgage is more than £120,000 while household credit card debt is now more than £2,500.

    They have also worked out how much people are repaying every year in interest and the figure per household is now £1,859 or an alarming 3.74% of our average earnings.

    Help available for people living in Scotland who are struggling

    Those are shocking figures but there is help available for people living in Scotland who are struggling with their debts.

    That is to contact the team of helpful debt advisers at Scotland’s Trust Deed to discuss their current situation and a potential route to financial stability.

    There are a number of debt solutions available including a trust deed, a debt arrangement scheme and also sequestration.

    All of these potential solutions will need to be carefully considered and the debt advisers will be able to give the help and advice that someone struggling with their debts will appreciate.

    It should also be highlighted that the solutions are only available to people living in Scotland and the Scotland’s Trust Deed team have years of experience in helping Scots resolve their debts.

    One big help is the firm’s online trust deed calculator which will help someone determine whether they qualify for help in resolving their debt worries.

    The online debt test

    The online debt test is a very simple form and takes just a minute to complete but will deliver an instant answer which may help people struggling financially to seek advice.

    The advisers at Scotland’s Trust Deed can also help with other methods as well including debt write-off, informal negotiations and debt consolidation.

    The team can also discuss what a debt management plan is and how to go about a full and final settlement with a creditor.

    For more help and information about resolving debts in Scotland, speak with the experts at Scotland’s Trust Deed.

  • Many Scots run out of money before pay day   

    A new survey has revealed that half of Scots who are struggling with debts run out of cash before their next payday.

    The findings reveal that this level of debt is ‘just a fact of life’ for many people.

    The survey from a debt charity found that 15% of the 1,500 Scots questioned said that they ran out of money ‘always’ or ‘most of the time’.

    Of those who run out of cash before being paid, 48% say they had to use a credit card or borrow money to buy food.

    One in five people also had to borrow money to pay their rent or mortgage, while 29% had to borrow money so they could pay their utility bills such as gas and electricity.

    Worryingly, 23% of Scots say they have had to go without food on at least one occasion over the last 12 months.

    Cutting back on essentials

    On top of this, the report found that 55% of people say they are unable to pay a £100 unexpected bill without borrowing the money, not spending on essentials or using their savings.

    However, should they be landed with a £250 bill, the numbers who cannot pay this increased to 69% and for an unexpected £1,000 bill, the number rockets to 83% of Scots.

    The survey was carried out to show the financial realities that are facing Scots and their relationship with debt.

    Of those questioned, 23% said they find it difficult to manage financially and 38% said they were just about ‘coping’ with their present income.

    A spokesman for the charity said that debt for most Scots is now a fact of life.

    However, he added, the survey also shows that debt is not just a problem for those who are on low incomes as people on a reasonable salary occasionally need to borrow cash to get to their next payday.

    Ways for people in Scotland to resolve their financial situation

    There are ways and means for people in Scotland to resolve their financial situation and one way is to undertake a trust deed.

    This means they can repay what they can afford, usually over 48 months, with the remaining debt written off as unaffordable.

    The big attraction for a trust deed is that it will enable the Scot to keep their home, should they own it, though they will need to abide by a legal agreement.

    Of those Scots who are struggling financially, it’s also possible to speak with the experienced debt advisers at Scotland’s Trust Deed to find out what other potential avenues there are for them to resolve their financial difficulties.

    Of these, it may be possible to undertake a debt arrangement scheme which has a lot of similarities to the trust deed and is run by the Scottish government.

    There’s also the potential for sequestration, which is better known as bankruptcy, but careful consideration needs be done before this is undertaken.

    Struggling financially in Scotland

    With so many people struggling financially in Scotland, it makes sense to speak with those who understand the situation and what potential debt solutions are available.

    This means speaking with the experts at Scotland’s Trust Deed to find out what potential solutions may be available and it’s also possible to use the online debt test to see in just a few moments what help is available.

  • The advantages and disadvantages of a Trust Deed   

    Scotland’s Trust Deed offer the public a quick, impartial and understanding service which ascertains whether an applicant is eligible for a Trust Deed. If you are accepted to begin the process before you start it is important to decide if this route towards a debt free life is for you.

    A Trust Deed is a responsibility that must be taken seriously but which can free your mind from financial stress. Scotland’s Trust Deed will make sure the pros and cons of a Trust Deed are explained to you in full but here’s a very quick guide to basics.

    Advantages of a Trust Deed

    • The advantages of a Trust Deed mean payments you are expected to pay per month to clear your debt are individual to each applicant. The amount will be decided on by working out how much you can afford after other bills and outgoings are paid.
    • The stress of dealing with letters and phone calls from the companies and people you owe money to will be greatly reduced. Your Trustee at Scotland’s Trust Deed will contact your creditors on your behalf.
    • The amount of administration involved in dealing with your debt will be significantly reduced. It will be organised by an insolvency practitioner.
    • There is no further risk of legal action by your creditors. The purpose of the negotiations with them is to gain ‘protected’ status for your Trust Deed. Once this is achieved whoever you owe money to will not be allowed to make any moves to get the rest of their money.
    • You will be in control of your finances once more. This will be because of sensible, legal, professional, experienced and considered advice that has been given to you and followed.
    • There will be no ‘up front’ charges for the process by Scotland’s Trust Deed. The Trustee fees are part of the negotiating process with your creditors and form part of your monthly payment and, where relevant, the sale of any assets you may have.
    • At the end of the life of your Trust Deed, usually four years, your debt will be paid off. This is, of course, based on the strict understanding that all monthly payments will be made in a timely fashion.

    Disadvantages of a Trust Deed

    The disadvantages of a Trust Deed include:

    • Should you be a homeowner in possession of equity then that value must be used to pay off your creditors. This can be a frightening prospect but there are solutions to be found; re-mortgaging, payments made by a third party or extending the life of the Trust Deed and making extra payments.
    • A Trust Deed is not guaranteed to be successful which can make waiting for decisions from your creditors stressful. They can disagree with the terms offered by your Trustee and prevent your Trust Deed from achieving protected status. Some professional bodies now ban their members from agreeing to and signing a Trust Deed.
    • Your credit status will be adversely affected by a Trust Deed. Getting credit for mobile phone contracts or a credit card may become more difficult as the process will become part of your credit history. That said, struggling alone with increasing debts and missing more and more payments will also have a detrimental effect on your ability to get credit.

    At Scotland’s Trust Deed, you will be looked after by your own Trustee who will ensure all aspects of the process are explained and discussed with you for your approval. You are in safe, expert hands.

    For more help and information about the advantages and disadvantages of a Trust Deed, contact the helpful team of advisors at Scotland’s Trust Deed.

  • Struggling with debt? A step by step guide to Scotland’s Trust Deeds   

    If you live in Scotland and are struggling with debt, then a Trust Deed is an option worth investigating. If you qualify, and it’s easy to do with Scotland’s Trust Deed, your money worries may soon be over.

    The process to securing a Trust Deed is methodical and you will need the help of an experienced professional. When the process is started, it is always hoped that it will succeed; however, it is not guaranteed. Scotland’s Trust Deed has a high success rate. Here’s our step by step guide as to what will happen.

    Stage one

    Contact Scotland’s Trust Deed and we will work out if you qualify for a Trust Deed, this is a very quick process. Should it not be a suitable option we will take you through where to go from there. Struggling with debt is difficult and we will be non-judgemental and supportive.

    Stage Two

    You will have an in-depth discussion about your financial situation in order to work out a budget and how much you can afford to pay of your debt per month.

    The level of equity in your home, should you own it, will be worked out. If there is a lot you will be expected to give this to your trustee and he will use it to pay off some of your debts. However, you will not be expected to sell your home.

    The amount agreed upon with your trustee at Scotland’s Trust Deed will replace all of your other existing monthly payments. It will form the legal basis of your Trust Deed.

    Stage Three

    Sign your Trust Deed, once this has been done we will contact each of your creditors (the list must be thorough and honest) with details of how much you can pay, how your assets are being dealt with (the equity in your home) and the amount they will receive as part of your Trust Deed.

    These offers are made official by a notice in The Register of Insolvencies. The lenders who you are struggling with have five weeks to decide whether to accept your offer.

    Stage Four

    The decisions of your creditors will have been received. Hopefully there will be no objections to your proposal. If there are they need to be in the minority and less than one third of the total debt. Any creditor who doesn’t respond will be assumed to have agreed.

    If all is well, your Trust Deed will be protected and no legal action can be taken against you by your creditors. If there are enough objections the Deed won’t happen and we’ll help you decide how to proceed from there.

    Stage Five

    You must make the payments agreed to as set out in your Trust Deed. You will no longer be struggling with debt as the monthly amount will have been deemed affordable by your trustee. It is vital to make these legally binding payments. An agreement usually lasts four years and after this time you will be debt free.

    For more help and impartial information, contact the team of friendly debt advisors at Scotland’s Trust Deed.