Days after the collapse of the country’s last big payday lender, one Scottish charity says debt in the country still a serious issue.
The charity says that payday lenders still create lots of work for them to deal with.
The claim comes after QuickQuid was placed in administration and it comes a year after the failure of Wonga after they saw a big increase in customer compensation claims.
Now, the charity says that with the latest payday lender going into administration means that the decline of these payday loan firms does not indicate that debt in Scotland is now less of a problem.
A spokesman said: “Too many payday lenders have been charging high interest rates and they were not clear about these at the point-of-sale and this led to hundreds of thousands of people falling into the misery of debt.”
Along with other charity and debt organisations, there are moves to improve regulation of the payday loan industry to help protect those who have been caught out previously by payday lenders.
‘Doesn’t mean that debt in Scotland is less of a problem’
The spokesman added: “While we see fewer payday loan cases, this doesn’t mean that debt in Scotland is less of a problem. People who need money will seek other ways of finding credit – debt is still a big issue.”
For people who live in Scotland, there are a number of debt solutions available including a Scottish trust deed.
The trust deed helps those in debt, they must owe at least £5,000, to repay at an affordable rate over an agreed period of time.
This debt repayment period is usually 48 months and when this comes to an end, the amount of unaffordable debt that remains is written off.
For many Scots, this is an ideal debt solution – particularly for those who own their home.
Alternatively, there is the debt arrangement scheme which runs on similar lines.
The big difference is that the entire debt will be repaid over an agreed period but, more importantly, the debt repayment amount will be affordable.
Debt solutions in Scotland
With both of these debt solutions in Scotland, lenders will no longer be able to hassle you because of the terms of these agreements.
One of the leading providers of debt solutions for Scots is Scotland’s Trust Deed and there is a team of friendly advisers available to talk over your circumstances and they can highlight the potential debt solutions available. Call them today to find out what they can do for you.