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.