One charity in Scotland that helps Scots struggling with their debts says the country is facing a council tax debt crisis.
The organisation says that they have helped 3,400 people this year who have council tax debt worth £6.4 million.
They say that this could be the tip of the iceberg with the actual amount being owed being much higher.
From these figures, the charity says that the average council tax debt for someone living in Scotland who is seeking help with it is £1,900 per person – that’s higher than the national average of £1,147.
However, Scots who are struggling for money should find out whether they can claim a council tax reduction which could be worth £700, on average, every year.
A spokesman for the charity said: “There are fewer households who are claiming a council tax reduction when compared to the old scheme.”
Scots who are struggling financially
Along with council tax debts, Scots who are struggling financially may also have other large debts they have accrued.
It’s important that if this is the case, they seek financial debt advice to help alleviate their problems.
One effective way of finding out what might be available for them and their circumstances is to speak to Scotland’s Trust Deed and their team of friendly debt advisers.
The advice that is given is not only confidential, it’s also impartial so there is no obligation to follow it.
Among the issues that may be flagged up to help resolve Scots struggling financially could be a debt arrangement scheme, which is a way to repay everything that they owe at an affordable rate.
Potential of a Scottish trust deed
There’s also the potential of a Scottish trust deed which is a similar scheme and will run for 48 months with the debt remaining being declared as unaffordable and then written off.
There are criteria for applying to these debt resolution schemes, but you could also consider other potential solutions, including:
- A debt management plan: This is a way to repay debts at an affordable rate and have the fees and any interest frozen. There’s also just one monthly payment to make.
- Full and final settlement: This will mean contacting creditors to see how much they’re willing to accept as a full and final settlement of what is owed. There may be an amount that is remaining that will be written off.
- Informal negotiation: Again, this means discussing with your creditors and coming to an informal arrangement to repay debts at a frequency and an amount that they are happy with.
- Debt write-off: You could contact creditors to explain your situation and request they write off the debt that’s owed. This will only work in special circumstances, such as suffering with illness.
If you are struggling financially with debts and you live in Scotland, then it’s time to consider taking action to resolve these debts.
You should speak with the Scotland’s Trust Deed team as soon as possible on (0141) 297 1178 or you could use their simple online debt solutions form to see whether you will be able to qualify for a Scottish trust deed.