If you are wanting to know what your options for dealing with debt in Scotland, then this article will help.
There’s no doubt that the issue of debt is a growing problem in the country with people struggling to make ends meet.
However, there are various ways and means of getting into better financial health and some are only available for those who live in Scotland.
These debt solutions available but it’s always advisable to seek advice about your debts as soon as possible before problems escalate and you face extra charges and interest.
It’s also important that the debt adviser you speak with offers impartial advice and that is the case with the friendly team at Scotland’s trust deed.
Debt advisers will be able to explain your debt solution options
The idea is that the debt advisers will be able to explain your debt solution options and help you decide on which will be the most suitable. Obviously, you do not have to follow their advice.
The first step is for a debt adviser to assess your financial situation so they will look at how much you earn and spend and then decide which are your priority debts. These are the debts you must meet because the penalty for not doing so is much greater – for instance not paying your rent could see you lose your home.
Among the debt solutions for those living in Scotland include a Scottish trust deed.
The trust deed will last for up to 48 months and is a legal agreement that needs to be maintained with the prospect of any debt that remains when the term ends being written off.
The trust deed is particularly attractive for those who own their own home but there are criteria to meet.
Scottish government runs the debt arrangement scheme
Alternatively, the Scottish government runs the debt arrangement scheme which enables someone in Scotland to repay their debts without having to suffer with the threat of legal action or be hassled by their creditors.
As with a trust deed, your repayments will be smaller under the scheme and will run for an agreed period of time until your entire debt is repaid in full.
One of the big attractions for the debt arrangement scheme is that the charges and interest on your debt will be frozen and the repayments are easy to maintain.
Another potential solution is bankruptcy, which is known as sequestration in Scotland. There are serious issues to consider when declaring bankruptcy so you will need to discuss what these are with a debt adviser.
It’s also possible to negotiate a deal with creditors for you to enjoy a more affordable repayment plan so you could speak to them directly.
Discuss a debt management plan
It is also possible to discuss a debt management plan to help you plan effectively for your financial needs and repay what you owe. There’s also the question of undertaking an informal negotiation as well as a full and final settlement with creditors.
For more help and information about any of the issues raised in this article and if you live in Scotland and want to repay your debts, then speak with the friendly team of debt advisers at Scotland’s Trust Deed as soon as possible.