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.