How people in Scotland can manage their money to become debt free
There are lots of people living in Scotland who find themselves in debt for many reasons and each individual story will be different.
Whether it’s losing a job, the end of a relationship, forgetting that credit cards spending sprees need to be paid back … the potential sources of financial stress are endless.
Once the situation has become too difficult and serious to avoid any longer a debtor will, hopefully, take control.
Debt support from companies such as Scotland’s Trust Deed
They will seek financial advice, look for debt support from companies such as Scotland’s Trust Deed and will help themselves with a carefully negotiated repayment plan based on what they can afford.
If you recognise yourself in this scenario, the key to soon becoming debt free and without financial stress is what you do from now on.
It’s tempting to relax and enjoy the freedom from imminent disaster that your Scottish Trust Deed, Debt Arrangement Scheme or Debt Management Plan has given you.
Now is, in fact, the time to focus on keeping up with the legally binding payments you agreed to and reassess your attitude to money.
How to stick to a budget and overcome debts
We’ve put together a collection of helpful tips and advice about how to stick to a budget and overcome debts:
- Think in terms of want and need. Do you really need that new top of the range TV? Just because your neighbour has one doesn’t mean you have to swap your existing television that works perfectly and is a barely year-old model. The retailers and manufacturers want to ensnare us in a technology upgrade cycle to make them money. Break free.
- Don’t tolerate waste. Shop carefully and plan your meals ahead. That way you won’t waste money on food that will go off before you eat it. Maybe do smaller shops as you need items rather than one big, splash the cash, shop once a week. You will inevitably have to nip back to the supermarket for milk and other essentials so it won’t be as much as an inconvenience as you anticipate.
- Use cash. Take out the amount you can afford to spend each week and don’t use your bank card. Cash feels like ‘real money’ whereas debit card spending somehow doesn’t. Watching the amount of paper money and coins dwindle as you purchase really focuses the mind on how quickly a budget can be blown.
- Tempted by something off budget? You are human after all and shiny, new pretty things excite us. Work out how many hours of work it would take to earn enough to buy it. Still worth treating yourself with? If not, walk away. If it still feels like a good idea. Still walk away but tell yourself if you really want it you’ll come back tomorrow. The chances are you won’t be bothered and will most likely have forgotten about that unexpected ‘must have’.
- Take a homemade lunch and flask of coffee to work. You will save a surprisingly huge amount of money over the course of a year. Avoiding a lunch time dash to the shops will allow you to swerve any purchases of things other than the food you’re about to eat. Going this will also benefit your health by reducing the amount of sugar and salt heavy processed, packaged foods you eat.
Scottish debt advisors who will help negotiate
You’ve taken responsibility for yourself and your finances and will have worked hard with Scottish debt advisors who will help negotiate yourself into the position of heading out of debt. Don’t waste those efforts. Really think about how and what you spend and make sure your future is debt free.
For more help and information about how to achieve a debt-free life then contact the team of experienced debt advisors at Scotland’s Trust Deed who will offer impartial help and guidance.
Negotiating with your creditors – how a specialist debt advisor can help
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.
Find debt solutions for those who live in Scotland
Being in debt is worrying and can cause a large amount of stress which is why it is important to find debt solutions and for those who live in Scotland, there’s help available.
Thinking of the seriousness of a debt problem will be overwhelming and this can lead to extremes of either inertia and denial or even bad decision-making through panic.
Instead, the most important act of self-help is to calmly and think logically through the debt situation; resolving your debt may take time and discipline but it is worth it for a happier, healthier life.
Resolve debt for people living in Scotland
The first step to resolve debt for people living in Scotland is to collate all the information you have about each and every debt; be honest with yourself and include all of the people and companies you are in arrears with or owe money to.
Then, dedicate a plastic pocket or a file to each debt and include the name, addresses, account numbers, a copy of any credit agreements and the exact amount owing for each of them.
If you are not sure how you owe and/or don’t have access to the paperwork relating to your debt, then contact the creditor. They should supply you with up-to-date information including interest and charges.
Identify which are ‘crisis debts’
You must then identify which are ‘crisis debts’ since these must be your priority.
For instance, mortgage and rent should be the top of your list as losing your home obviously needs to be avoided. Any monies owing that would lead to court action if unpaid are also important to deal with first.
Essentially, if consequences are imminent and have an impact then your focus must be applied to prevent them.
It may also help to speak with debt advisors who can offer impartial advice about how to tackle serious indebtedness and the steps needed to resolve the situation.
For many Scots who have struggled with their debts, the team at Scotland’s Trust Deed have offered excellent advice which is tailored to providing the right solution for each individual.
A specialist advisor will create a plan exclusively for you
Essentially, the advisors will help you and if you qualify for our help then a specialist advisor will create a plan exclusively for you and your personal, unique circumstances
Next on the checklist is working out how much you can afford to pay. Again, be scrupulously honest with yourself.
If you have very little left over from your living costs or if the majority of your income is from benefits, then your situation will be more complicated; keep the availability of free, empowering advice in mind at all times.
Also, you can find free budgeting tools online, these will help you work out how much money is coming into the household and how much needs to go out in order for it to function. Be as accurate as you can and refer back to the information when negotiating with debtors.
There is power in the knowledge of what you can and can’t afford – it is especially useful to have to hand the evidence to back up any re-payment offers you make.
You can confidently explain how you have arrived at the figure you have and there is absolutely no point in being cajoled into paying back more than you can afford since the payment plan will fail and the debt problem will continue.
Resolving debts in Scotland
When it comes to resolving debts in Scotland, those in debt should use these tips:
Collect the details of each debt and keep a file for ALL of them.
Identify which debt should be at the top of your priority list. Contact a debt advice service about these at the earliest opportunity.
Find a budgeting tool online and work out how much you realistically afford to pay each creditor back per month.
Consider all your information and ready yourself to move to the negotiating phase
Debt advice services for Scots
Debt advice services for Scots, such as Scotland’s Trust Deed, are there to help you should you not feel confident enough to deal with your creditors.
Remember, you are not alone and must remember that there is a solution to every debt problem no matter how big or complicated it may appear to be. It will take time, effort and patience but it is always possible to resolve it successfully.
Nearly half of households ‘just about manage’ financially
They are known as the ‘generation JAM’ which stands for ‘just about managing’ financially and around half of households in the country define themselves as such.
Research has also revealed that 14% of families have had to give up necessities recently including daily travel costs and food for last-minute unexpected expenses which they could not afford to pay.
The survey by a finance firm shows millions of households across the UK, including Scotland, are struggling financially and risk falling into debt.
The report also reveals that 11% of those questioned said they had to give up their holidays as well as seasonal events including Christmas to help pay for unexpected bills and 10% of them are still paying the bill 10 months afterwards.
The survey also reveals that while there is no clear definition for a JAM family, most respondents had at least one person who was working in the household and were struggling on an income that ranges between £12,000 and £34,000.
UK cities with the most JAM households
Of the UK cities with the most JAM households, Glasgow took eighth place with more than 54% of households who consider themselves to be ‘just about managing’.
Aberdeen was ranked in 14th position.
In comparison, London was ranked in 11th place and the top spot was taken by Coventry.
The survey also revealed that for most people, the biggest troubling expense for those who responded is their cars which cost them an average of £226 every year in unexpected bills.
The report reveals that 52% of households had had at least one car-related bill that dropped on them over the last four months which meant they had to dip into overdrafts or get a loan to pay for it.
Most common unexpected expense is for general bills
The most common unexpected expense is for general bills which came to £239 every year with many suffering with high energy bills which threw them off course.
One of the big issues for everyone who struggles with an unexpected bill is having someone to speak with should a bill go unpaid or cause even more financial stress.
This is when it might be a good idea to speak with an experienced debt adviser and there’s a helpful team of them at Scotland’s Trust Deed who can offer impartial help and advice.
They are available to speak with every day of the week and have helped thousands of Scots who have contacted them.
There are a range of potential debt solutions for people living in Scotland including a trust deed which many will find helpful.
Trust deed enables someone who is struggling with their debts
A Scottish trust deed enables someone who is struggling with their debts to repay what they can afford over 48 months and the remaining amount will be written off as unaffordable.
There’s also a similar arrangement with a debt arrangement scheme which also enables someone living in Scotland who is struggling with their finances to repay what they owe.
However, the big difference between a trust deed and a debt arrangement scheme is that under the latter all of the debts are repaid over a longer period of time.
The helpful team of debt advisers at Scotland’s Trust Deed also offer advice about sequestration – bankruptcy – which some people may be considering.
Potential debt solutions for people living in Scotland
Other potential debt solutions for people living in Scotland include undertaking a full and final settlement, conducting informal negotiations as well as debt consolidation.
It’s also possible to undertake an informal debt management plan but for more information and advice about these solutions, the team at Scotland’s Trust Deed will be able to help.
Scots are facing an ‘unprecedented struggle’ against debt
A charity has revealed startling statistics that Scots are increasingly struggling with their debts and they have risen by 12% over the past year for those who are already struggling financially.
More worryingly, the charity says debt for these people will rise by another 17% over the coming year.
This will lead to a big increase in people being unable to pay their council rent and council tax.
There are now calls for a new strategy to address debt and help people living in Scotland.
The charity’s report also points out it is working to help those in need and says growing numbers of households are struggling with ill-health because they are unable to pay their rent, fuel bills and council tax.
Warning that those in debt in Scotland
There’s a warning in the report that those in debt in Scotland are accumulating even more debt which they will struggle to pay off.
From official figures, they say that rent arrears for some Scottish councils over the past two years have increased along with fuel debts and other household costs.
For people living in Scotland who are struggling to repay their debts, the first effective step they can take is to speak with an experienced debt adviser about what they can do.
For those who are interested, there’s a team of debt advisers at Scotland’s Trust Deed who will be able to give impartial advice that may help.
Among the tips may be to undertake a trust deed which enables someone living in Scotland to write off their unaffordable debt.
A trust deed is a legal agreement
This route is particularly attractive to those who own their own home since they will keep possession of it but a trust deed is a legal agreement between a debtor and their lenders.
Another similar route out of debt is a debt arrangement scheme which enables someone living in Scotland to repay all that they owe but at an affordable rate.
One of the big plus points for a debt arrangement scheme is that it offers the debtor some legal protection so their lenders will no longer be able to hassle them.
It’s also possible to discuss with an experienced debt adviser about the possibilities of sequestration – or bankruptcy as it is better known.
Also, for those who do not want to speak with an adviser, Scotland’s Trust Deed also have an online form that is quick to complete and offers advice on what financial solutions may be available to them.
Scots who are struggling with their debts
It’s also worth appreciating that for Scots who are struggling with their debts, that there are other financial routes to consider.
Among these, it is possible to consider debt consolidation and write-off as well as considering undertaking equity release, a secured loan or remortgaging.
The debt advisers at Scotland’s Trust Deed will also be able to offer information about informal negotiation with lenders and undertaking a full and final settlement of debts.
Some people in Scotland may also find putting a debt management plan together may also be an ideal solution for resolving debts.
People living in Scotland who are worried about their debts
For people living in Scotland who are worried about their debts and are concerned about calling a debt adviser should be reassured that Scotland’s Trust Deed has helped many people who have contacted them and are willing to help others too.
So, for any Scot who is looking for debt advice, then the team at Scotland’s Trust Deed will be to help with their extensive experience to offer impartial help and they are available to speak with by phone every day.