It should come as no surprise that Scots in debt worry about their situation and around 15% of people develop psychological problems, say researchers.
The findings from a financial firm reveal financial worries also disturb the sleep of 49% of Scots, with 10% struggling to sleep every night.
In addition, around 44% of people living in Scotland say their financial worries tend to impact on personal relationships.
On top of this, 27% of Scots are stressing when they think about their potential financial situation when they retire – though according to figures around 56% of the UK’s population has not managed to save enough to see themselves enjoy a comfortable retirement.
A spokesman for the financial services firm said: “The link about worrying about money and mental health is well-known but what’s less well known is the extent to which our longer-term retirement savings and associated issues contribute to our mental health.
“What is clear is that when people consider the reality of their retirement they recognise they need to be more prepared and are keen to put money aside. This study shows that people need to face up to the reality of retirement and save more.”
People don’t save enough for their retirement
One of the issues that the survey revealed about why people don’t save enough for their retirement is that they feel it’s too far in the future for them to take action.
However, it’s not just our retirement that we should be planning for, our current financial situation also needs close attention.
This is where the debt advisers at Scotland’s Trust Deed can help with impartial advice.
For those who are struggling with their finances, there are some potential routes for resolving debt for those living in Scotland.
Write off an affordable debt
Among them is a Scottish trust deed which will enable someone in debt to write off an affordable debt when their agreement ends.
Essentially, they will enjoy lower monthly repayments over a fixed period, between three and four years, at a rate they can afford.
The amount that remains at the end of this period is considered to be unaffordable and will be written off.
As with most things in life, there are pros and cons about undertaking a trust deed.
Among the advantages is the opportunity to write off a large part of unsecured debt which means things like credit cards, personal loans and a bank overdraft.
The monthly repayment will be vastly reduced and all charges and interest will be frozen.
The aim of a trust deed
The aim of a trust deed is to be completely free of debt when it ends and it’s not as disruptive as bankruptcy, or sequestration for instance.
A trust deed is also easy to set up and can be arranged within six weeks normally.
However, there are some downsides and secured debts such as higher purchase repayments and mortgages cannot be included and all liabilities and assets must be declared.
Also, while the trust deed is in operation, you will not be allowed to access further credit.
It’s also important to appreciate that a Scottish trust deed is a binding contract between you and your lenders and must be respected.
Expert debt advisors at Scotland’s Trust Deed
One of the expert debt advisors at Scotland’s Trust Deed will be able to review your financial circumstances in detail and work out what you can afford to repay every month under its terms.
Obviously, your mortgage, car and living expenses will also need to be deducted before the amount can be determined.
For those people who do not meet the criteria, a debt arrangement scheme may be a more suitable way to repay debts.
This is backed by the Scottish government and will see a debtor repaying all that they owe to their creditors and there’s no amount to be written off when the period ends.
For more help and advice about a Scottish trust deed and the debt arrangement scheme, then speak with the friendly team of debt advisers at Scotland’s Trust Deed.