If you are living in Scotland and struggling with debt it’s important you do not worry alone and seek advice as soon as possible to resolve your situation.
There is help available from charities and local authorities and it’s also possible to speak with experienced debt advisers at Scotland’s Trust Deed to see what potential solutions are available.
Also, the advice from Scotland’s Trust Deed is impartial which means you will find it helpful and you do not have to follow it.
All debt advisers in Scotland will take some details to understand fully your current financial predicament and then use their experience to offer a solution.
A debt management plan
This may include a debt management plan to help you budget effectively to repay debts.
It’s also possible if you can afford to repay creditors, those are the people and organisations you owe money to, that they may consider a temporary repayment plan. This will see you make a small payment as a token towards your debts and shows you are willing to deal with them.
Some people living in Scotland may look debt consolidation so you could take out one big loan and repay all of the debts with this money. For those with a debt problem this could be a risky solution and advice will be needed.
It’s also possible for homeowners to remortgage to provide the money to repay debts but there are other options before you should consider remortgaging. Some may also be considering equity release to free up money from their home but again you need to speak to someone for advice first.
Before we discuss popular debt solutions in Scotland, we should mention sequestration, which is also known as bankruptcy.
This is a serious step to take and will not be available to everyone, particularly if you can afford to keep paying your monthly debt repayments.
Scottish government-run debt arrangement scheme
Alternatively, for those living in Scotland, there’s access to the Scottish government-run debt arrangement scheme so you will repay your debts using a debt payment programme.
This will see you making just one monthly, or weekly, repayment to your creditors.
A big attraction for the debt arrangement scheme is that once the debt payment programme is in place, then creditors cannot take any action against you.
There’s also the option of a trust deed and again it’s only available to people living in Scotland.
Under a trust deed, you will sign a legally binding agreement to repay your debts over an agreed period, usually up to four years.
If you maintain your monthly repayment plan then the debt that remains at the end of four years is written off.
Seek impartial advice before committing to a trust deed
While this may appear to be an ideal solution you should seek impartial advice before committing to a trust deed.
This may mean speaking with the experienced debt advisers working with Scotland’s Trust Deed who will offer impartial help and advice which you will find helpful and you do not have to follow their recommendations.
Again, the debt advisers will be able to discuss all of the debt solutions mentioned in this article and offer a tailored solution to meet your own specific needs. If you simply want to find out what help is available without speaking to anyone, then there’s a debt test on the Scotland’s Trust Deed’s website which will highlight all of the potential debt solutions for your situation and it takes just a minute to complete.
While you may not be eligible for a trust deed, there will be a debt solution available so you can get into better financial health.
Help and advice about dealing with debts in Scotland
For more help and advice about dealing with debts in Scotland it’s important to act sooner rather than later and speak with someone who can help – the Scotland’s Trust Deed debt advisers are available to speak with every day.