There are unique options available for Scots to deal with debts and we will explain what these solutions are.
While there is a friendly team of debt advisers available to speak with every day at Scotland’s Trust Deed, it’s important that for people living in Scotland struggling with their debts that they seek help as soon as possible.
This is to help prevent your debt level from increasing with charges and interest being added. It’s also wise to avoid late payments which may incur penalty charges that might add to your debt stress.
However, seeking the right advice is important and a debt adviser can help explain your potential options and help you choose the best solution for your circumstances.
A debt adviser will do this by looking at your current financial position and then taking your income and expenditure to work out which debts are the priority ones and how much you can afford to repay creditors.
Be honest with yourself
It’s important to be honest with yourself at this point since the figures may come as a surprise to those who are struggling with money.
However, before moving towards an official arrangement, there are other ways to negotiate with creditors in a bid to arrange an affordable repayment plan.
Contacting a creditor whenever you are struggling to repay will be important so they can make an offer for you to repay at a lower rate and over a longer period of time.
For people living in Scotland who are struggling with debts, there are three solutions available here and nowhere else.
The first potential solution is called a debt arrangement scheme which is run by the Scottish government and will enable you to repay debts over an agreed period of time.
The debt arrangement scheme
Under the debt arrangement scheme, the debts will be repaid in full and the threat of legal action and pressure from creditors will be lifted.
Under the scheme, you will make just one affordable repayment every month which is then shared between your creditors and the charges and interest on your debt is frozen.
The big attractions for a debt arrangement scheme, and the debt advisers at Scotland’s Trust Deed will be able to explain more, is that the repayments are easier to maintain so you will soon regain control over your financial situation.
Also, for people struggling with debt in Scotland is the opportunity of a Scottish trust deed.
A trust deed can run for up to four years and while it’s not available to everyone, you will repay a lower amount every month for a longer period of time.
One this agreed period comes to an end, then any debt that remains is considered to be unaffordable and is written off. This means you will effectively be able to start again but not have the pressure of dealing with your debts.
Potential debt solution for Scots
Another potential debt solution for Scots is sequestration which is another name for bankruptcy. If this is an attractive option then you need to seek impartial advice to see whether it really is the best route to a debt-free life and there are serious issues to deal with once you opt for this route.
There are other debt solutions that need to be considered, and if you have money to repay debt then it’s still worth seeking impartial advice about the best way of going about things.
It’s important that you check which are the urgent debts which you should be dealing with first and while you can deal with creditors directly you can also ask debt advisers to do this for you.
There’s also the possibility of loan consolidation so you take out one loan to repay all of your debts.
There are disadvantages and disadvantages for all of the debt solution routes for those living in Scotland and you should seek out as much information as you possibly can before you come to a decision about which one will best meet your needs.
Friendly team of debt advisers at Scotland’s Trust Deed
Also, it’s important that you do not sign anything unless you really are convinced that it’s the best option for you and remember that the friendly team of debt advisers at Scotland’s Trust Deed will be able to offer impartial advice on the issue of debt.