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  • Worries about owing money in Scotland – there is help available   

    Worries about owing money can niggle unpleasantly at the back of you; if you’re feeling overwhelmed by the amount of debt that you are in it’s important not to ignore the problem and seek expert help.

    Scotland’s Trust Deed will provide impartial, quick and non-judgemental advice, just call us.

    One aspect of debt that is worth remembering is that there are good and bad types. As much as there are many negatives about being in debt, there are also some positives.

    Owing money is a very common part of modern life and is, in fact, almost necessary!

    Few people can afford to buy a home without taking out a mortgage. University education is virtually impossible to complete with owing money after taking out a student loan to cover rising tuition fees. Credit card debt, managed well, can actually improve your credit rating.

    Borrowing and owing money isn’t an inherently bad thing. Sometimes it’s unavoidable.

    The type of lender used is the key as some ensnare their customers into a web of compounded interest which sees them rapidly lose control.

    If this sounds like your lender and your situation don’t panic. Contact Scotland’s Trust Deed, we have lots of experience in dealing with this type of debt.

    Good Debt

    We’ve already mentioned mortgages and student loans, both can be categorised as ‘good debt’. The same can be said for a low interest, means-tested bank loan.

    Affordability is the watchword here. If you can afford to pay back your debt, if the interest rate on your loan is sensible and there is room in your budget for the occasional overpayment then your debt is healthy.

    Credit cards are a temptation and can lead to problems. However, a well-researched card ideally with 0% interest on what you spend, is a great tool to increase your credit score and make it easier to qualify for a bigger loan at a later date.

    Not having a credit card or any type of credit history can be detrimental to your credit rating. There is no proof on record of how good with owing money you are.

    Sensible spending and high repayments is what an individual should aim for but a track record of responsibility is needed.

    Bad Debt

    The first type of bad debts are those with high interest rates and large fees such as payday loans and expensive credit cards. Their interest rates will be displayed in the bottom corner of an advert in tiny writing – it’s very easy to miss.

    Particular lending companies may present themselves as being generous and kind for lending to people with low credit ratings but they are often anything but. They are, in fact, preying on vulnerable, desperate people with an already questionable history of owing money. Avoid at all costs.

    The second type of bad debt is the type that you will struggle to re-pay. If the amount of money you have to re-pay is only a little below, the same or higher than your income then it is imperative that you seek debt advice immediately.

    The debt advisors at Scotland’s Trust Deed can help with impartial advice.

    There are many charities and companies that offer services to people in Scotland who have an unmanageable amount of bad debt though the team at Scotland’s Trust Deed will advise and give you quick answers as to whether we can help you with negotiating a Trust Deed and what to do if we can’t.

    Late or missing repayments when owing money will have a detrimental effect on your credit rating and the amount of money that you eventually owe as fees will be added.

    Avoiding a payment on your loan so you can afford a credit card repayment will soon lead to trouble, don’t ignore the issue as the solution may be simpler than you imagined.

    Contact the debt experts at Scotland’s Trust Deed for advice.

  • Five steps to debt to a debt free life for Scots   

    The problems with debt may be getting worse for an ever-increasing number of people in Scotland but there is help at hand.

    Indeed, there are various debt resolutions available to Scots that are unavailable elsewhere.

    Among these is the debt arrangement scheme which is run by the Scottish government and which is proving to be very popular with an ever-growing number of Scots who are determined to resolve their debts effectively.

    Some debt experts say that there are thousands of Scots who are trying to deal with crippling levels of debt when they could be eligible for the scheme (DAS) and get on the path to sound financial health.

    Under the scheme, it’s possible to stop creditors from taking action against you so you can repay what you owe over a longer period of time.

    The first step is to make the call.

    The only way to access the debt arrangement scheme is to contact a debt adviser and the debtor may find that their creditor suggests they contact an organisation to seek debt help.

    This suggestion may come from a creditor when someone has missed just one payment but will probably happen when they have missed at least two.

    The second step on the path to a debt-free life is to examine all of the potential options.

    Along with the DAS, Scots can also access the trust deed which is a similar scheme in that the Scot will repay what they can afford over a longer period.

    However, the subtle difference between the two schemes is that under a trust deed the amount that remains at the end is considered to be unaffordable and will be written off.

    Scotland’s Trust Deed with a team of debt advisers

    There is help at hand with Scotland’s Trust Deed with a team of debt advisers available to speak with on the phone.

    The next step is put together a personal action plan.

    The debt adviser will need to provide creditors with information of income and outgoings over the last few months so the creditors can be contacted with a proposed repayment scheme.

    Should the creditors agree, the debt arrangement scheme will be approved though some creditors can refuse though the adviser could approach the Accountancy in Bankruptcy to approve the scheme instead.

    The fourth step to resolve their debt problems in Scotland is to meet their creditors’ payment demands.

    The debt arrangement scheme

    Under the debt arrangement scheme, all of the creditors interest, penalty charges and fees are frozen when the application itself is approved.

    Which brings us to the fifth and final step.

    That is to meet the repayment obligations to ensure the scheme remains valid and the creditors have no reason to reimpose charges and fees once more.

    For more advice and help about a DAS for someone in Scotland then it’s time to contact the helpful team at Scotland’s Trust Deed who have the expertise to explain more and help setup an arrangement.

  • Personal debt levels rise in Scotland   

    There are many reasons why people in Scotland are struggling with their debts and personal debt levels are rising for ever-growing numbers of Scots.

    Indeed, a survey has suggested that the rocketing amount is leading people to owe more than they did than before the 2008 financial crisis.

    The situation is now attracting the attention of the Financial Conduct Authority which is urging credit card firms to help consumers who are struggling.

    Statistics show that around 3.3 million people in the country have been stuck in the red for several months, many of them for several years.

    Figures from the Bank of England also show that we are now borrowing around 10% more on our credit cards than we did a year ago which is helping push the rate of spending to its highest since February 2006.

    Amount of money owed on credit cards

    Worryingly, the amount of money owed on credit cards is now more than £67 billion.

    But it’s not just credit cards, around 1 million people have increased their overdraft limits over the last year and 4.5 million people are using alternative credit such as informal loans and payday loans.

    In addition, households in the country are now spending £34 billion more than they earned last year.

    The figures also reveal that debt for lower-income households is also rising quickly with affordability becoming a key issue now because the level of debt is eating up a large part of the household income.

    However, it’s not all bad news and there is help available for people living in Scotland who are struggling to cope with their levels of debt.

    Speak with a debt adviser at Scotland’s Trust Deed

    It’s important that they speak with a debt adviser at Scotland’s Trust Deed to discuss the potential solutions available.

    If a Scot does not want to contact them, there is an online debt test which will also reveal what potential debt solutions are available.

    Among them is a trust deed which enables someone to repay what they owe at an affordable rate.

    In addition, they can take up to four years to make these repayments and the amount that’s left at the end will be written off.

    There’s also the opportunity of undertaking a debt arrangement scheme which is run by the Scottish government.

    This works along similar lines though the debtor will repay everything they owe but at an affordable rate over a reasonable length of time.

    It’s also possible to discuss sequestration, which is known as bankruptcy, though careful thought should be given before following this potential route.

    Advisers at Scotland’s Trust Deed can give more information

    The advisers at Scotland’s Trust Deed can also help give more information about remortgaging and equity release, debt write-off and consolidation as well as informal negotiation and a full and final settlement with their creditors.

    It’s also possible to put together a debt management plan which will help someone in Scotland get onto a better financial keel and deal with their debts effectively.

    For more help and advice about any of the potential debt solutions mentioned then it’s time to contact the helpful debt advisers at Scotland’s Trust Deed for more details and to find that how someone can take that first step to better financial health.

  • Scots in debt are stretched further as incomes struggle   

    Statistics published this week have revealed that Scots in debt are being stretched further with news that households are struggling to save money.

    Indeed, there’s been a further drop in the Scottish household saving ratio which is now at its lowest since 1963 when records began.

    The 3.3% fall in the last three months of 2016 reveal just how stretched households in Scotland are.

    The ratio reveals how much cash a Scottish household has as a percentage of their disposable income. And the answer is the amount is getting smaller.

    On top of this, the Financial Conduct Authority has also unveiled rules that will help those who are struggling with what they term as ‘persistent credit card debt’.

    Problem credit card debt

    They say there are significant concerns about the extent, nature and scale of problem credit card debt in the UK.

    The FCA says that around 3.3 million people are classed as in persistent debt which is those who have paid more in charges and interest than they have repaid on their borrowings over the last 18 months.

    There are also worries about the scale of unsecured lending rocketing with the Bank of England saying that credit standards need to be tightened. Basically, too many lenders are offering credit to people who will struggle to repay the money.

    On top of this, Scots are also facing increasing council tax and energy bills which means they will struggle to pay their bills even more. This also means they will have even less money to repay their debts.

    However, for those who are struggling and want to get out of debt, there is help at hand.

    Team of experienced debt advisers available

    For example, there is a team of experienced debt advisers available at Scotland’s Trust Deed and they can offer impartial help and advice.

    Many people will find this help useful and may also follow up on some parts of the advice.

    This may mean that they undertake a trust deed or they may agree that a debt arrangement scheme (DAS) is the best course of action for them.

    In both cases, a Scot who is struggling with debts will be able to repay what they owe and, if they own their own home, will be able to keep it.

    The difference between a trust deed and the DAS is that with the former most of the debt is repaid and the balance that remains is considered as unaffordable and written off by lenders.

    Under the Scottish government backed DAS, all of the debtor’s debts are repaid in full.

    Helpful debt advisers at Scotland’s Trust Deed

    There are also other routes to better financial health and the team of helpful debt advisers at Scotland’s Trust Deed will be to give more information on these.

    The advisers may will have more information about sequestration, which is a form of bankruptcy and other debt repayment schemes as well.

    These will include learning about a debt management plan and how to undertake a full and final settlement with creditors.

    The Scotland’s Trust Deed advisers can also discuss debt write-off as well as informal negotiation and debt consolidation.

    There’s also help with an online debt test which takes less minute to complete and will give a good indication of the potential debt solutions available for people living in Scotland.

    Scots who are struggling with their debts

    For Scots who are struggling with their debts and would like to know more about the potential solutions, the debt advisers are available to speak with for confidential advice on 0141 297 1178.

  • A Scottish Trust Deed or Sequestration?   

    If you are Scottish resident in significant debt then both a Trust Deed or Sequestration (bankruptcy) are potential options for you and Scotland’s Trust Deed will be happy to help you decide as these debt solutions have marked differences.

    Trust Deeds and sequestration will both see a high proportion of your debt written off. This is, of course, a lifeline for debtors who feel that they have lost control of their financial situation are finding it increasingly difficult to repay those they owe money to.

    A simple guide to trust deeds and sequestration

    It’s important to study the differences between both debt management options so we have produced a simple guide to trust deeds and sequestration to help you make an informed decision as to which is right for you.

    • Trust Deeds can last four to five years whereas sequestration is usually at an end after a year.
    • If you run a business it is likely that sequestration will affect your ability to continue trading. Your employees will be given notice and business assets will be subject to removal to pay some of your debt.
    • A Trust Deed will not require an upfront fee as the cost will be taken directly from your monthly payments. To apply for sequestration it will cost you around £200.
    • If you own a property or other assets they will not be at risk.
    • The interest and charges that apply to the debt you which to negotiate to pay off will be frozen with both Trust Deeds and sequestration. This is also true of the protection against any legal action your creditors may wish to take. It is not permitted in either case.
    • The negative impact on your credit rating is unavoidable. Whichever option you choose they will stay on your credit history for six years. The only way of reducing this is if your Trust Deed ends before this time.
    • Sequestration is, in the majority of cases, a clean slate, which is why it is attractive to debtors. In some cases, if you are deemed to have surplus income, a repayment plan will be required. With a Trust Deed the majority is written off and the rest needs to be paid back in monthly instalments.
    • Trust Deeds have a usual life span of four years. Provided you follow the rules of the Trust Deed you agreed to and make the monthly payments, then the rest of your initial debt will disappear. Unless you have extra income, or the court deems fit to use the money to pay back some of your debts under sequestration with, then you will be debt free after twelve months.
    • Both sequestration and a Trust Deed are subject to public notification. It is not possible to keep either option a secret as the information regarding your financial situation will be accessible online.
    • Sequestration will see your bank accounts frozen and access to new banking solutions will be limited. As long as you keep within agreed overdraft limits, it is possible to continue to use your bank account with a Trust Deed. Any public offices, trustee positions or directorships will have to be ended should you apply for sequestration.

    Advantages and disadvantages of trust deeds and sequestration

    The advantages and disadvantages of trust deeds and sequestration can be further explained by our financial and debt management experts at It is a big decision to make and one you should ask for help and support with.

    Each individual debtor will find pros and cons and it very much depends on your personal circumstances. Should you be self-employed, it is easy to see the disadvantages of sequestration as the impact on a business would be very, very difficult to recover from. A Trust Deed may also be a much more attractive option for a home owner as your right to keep it and continue living in your home will be protected.

    There is no black and white ‘better option’ so we would urge you, having been armed with the information in this article, to seek advice and begin your journey towards resolution and, remember, the helpful team of debt advisers at Scotland’s Trust Deed are here to help with impartial advice.