The number of Scots in debt who are struggling to repay their creditors has seen personal insolvencies rise by 7.9% in the final quarter of 2016, compared to the quarter before.
In total, 2,616 Scots were declared bankrupt in the last three months of last year, says Scotland’s insolvency service Accountant in Bankruptcy.
It appears that across the UK, the number of people who are declaring themselves insolvent because of unmanageable debts is reaching ever-higher numbers.
Official figures reveal that in 2016, the numbers rose by 13% on the previous year but they are still lower than the peak that was seen in 2010.
The worsening situation has led to the Bank of England warning that ‘vigilance’ is needed over the rising levels of debt.
‘Ballooning levels of household debt’
Indeed, the bank has been warning about the potential problems that may come because of ‘ballooning levels of household debt’ which are being fuelled, apparently, by the historic low levels of interest rates.
It’s these low rates which is encouraging people to borrow more than they can afford and the bank is now predicting that the levels of personal insolvency will rise through 2017.
However, for people living in Scotland there are ways of managing out of control debts to get back onto a firmer financial footing.
Among those options is a trust deed so the Scot who is struggling with debt will repay what they can afford over a given period of time and the amount that remains is considered to be unaffordable and is then written off.
Take on a trust deed
Not everyone will be able to take on a trust deed but for more information about this and other debt solutions for Scots, there’s a team of helpful advisers at Scotland’s Trust Deed who will be able to offer impartial advice.
Among the other routes available that they may discuss, is that for a debt arrangement scheme which runs along similar lines to a trust deed but there is no amount of debt remaining to be written off. All of the debt is repaid by the debtor.
However, one of the attractions for a trust deed and a debt arrangement scheme is that it will stop the lender from hassling the borrower and there’s an element of legal protection against lenders.
There is the option of sequestration which is better known as bankruptcy and as this is a form of insolvency careful consideration needs to be taken before undertaking this solution.
Team at Scotland’s Trust Deed
The team at Scotland’s Trust Deed can also point someone living in Scotland who is struggling with their debts to other potential debt solutions and these will include debt write-off and consolidation as well as undertaking informal negotiations for a full and final settlement.
There’s also the opportunity of undertaking a debt management plan which will see a debtor repaying the money they owe but a more affordable rate.
As mentioned previously, the Scotland’s Trust Deed debt advisers have the experience to help and their advice is impartial but will help those who are struggling to repay debts to find a solution to their financial situation.