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While London is the UK’s debt hotspot, for people struggling financially in Scotland they aren’t far behind.

According to the Financial Conduct Authority (FCA) more Londoners are having to deal with their unmanageable debt than anywhere else in the UK.

The average proportion of over-indebted people living in an area is 15% but in London there are 17% of adults who are struggling with their debts.

The FCA says that ‘over-indebted’ describes those who are struggling to keep up with credit commitments and their bills.

The average amount owed in unsecured debt across the UK is £3,200 – though the average debt holder owes £9,570.

Areas in Scotland where people in debt

However, there are some areas in Scotland where people in debt owe £10,000 more than that figure and these areas are closely followed by parts of outer London.

There’s also a greater reliance on people who have retired for their state pension with 30% of retirees not having a private pension.

Also, the survey highlights that 1.3 million adults don’t have access to a bank account.

There is no doubt the growing numbers of Scots in debt need to tackle their financial problems with independent and impartial advice.

This can be accessed by contacting the friendly team at Scotland’s Trust Deed.

Pros and cons of a debt arrangement scheme

In addition to discussing the pros and cons of a debt arrangement scheme, the debt adviser can also discuss what a Scottish trust deed can do.

Both of these arrangements are contractual and offer a level of protection for the debtor against the creditors – that’s the people who you owe money to.

In addition, both schemes offer the ability to repay debt at a much lower rate – something that’s more affordable – and over a longer period of time.

The difference between a Scottish trust deed and the debt arrangement scheme, which is run by the Scottish government, is that the latter sees all of the debt being repaid.

With the trust deed, there will be an amount of debt remaining when the agreed period for the arrangement comes to an end and this is then written off as being unaffordable.

Help for Scots in debt

That’s a big help for many Scots in debt and the advisers at Scotland’s Trust Deed can help with organising one or talking through what the potential solutions for resolving debts may be.