The number of Scots who are getting into financial difficulties has rocketed by 23%, government figures reveal.
Many people are seeing their household budget being squeezed with items rising quicker in price than wages are.
The figures reveal that in the three months to September, 3,067 people entered a personal trust deed or bankruptcy in Scotland.
That compares with 2,493 people in the same period in 2017.
Taking out a trust deed
The number of people taking out a trust deed has risen by 42% over the quarter, while bankruptcy numbers rose by 0.3%.
The Scottish government’s Minister for Business, Jamie Hepburn, said: “The individuals who are entering insolvency continues to be significantly lower than 10 years ago, but the issue of unsustainable personal debt is something we cannot take lightly.”
The chairman of the insolvency and restructuring trade body, R3, Tim Cooper, says that many Scots are seeing their household budget being squeezed with rising prices and wages are not keeping pace.
He added: “The considerable rise over the last decade in the cost of living means that personal finances strain is still common.”
Mr Cooper also points out that Scottish incomes have not recovered since the financial crisis of 10 years ago.
He also warns that with the rising cost of living, these personal financial strains are becoming more likely, though the rate of unemployment looks like it’s bottoming out which could result in pay rises across-the-board to boost Scottish incomes.
Scots looking at insolvency solutions
There will also be a reduction in the number of Scots looking at insolvency solutions, he says.
While there are growing numbers of Scots getting into financial difficulties, the figures also reflect the growing numbers of people in Scotland looking for debt solutions.
There are a number of routes available that are only accessible in Scotland and these include a protected trust deed, the debt arrangement scheme or bankruptcy, also known as sequestration.
The team of debt advisers at Scotland’s Trust Deed can give details on all of these solutions including other alternatives, including negotiating with creditors, debt write-off and consolidation as well as discussing a full and final settlement.
It’s important to appreciate that the advice given by the adviser is confidential and impartial, so there’s no obligation to follow what is recommended.
Best debt solution for someone living in Scotland
The best debt solution for someone living in Scotland will depend on their personal circumstances and how much they owe to their creditors.
For those who are considering bankruptcy or sequestration, then you will need to carefully consider your options because bankruptcy is a serious undertaking.
As the figures highlight, growing numbers of Scots are tempted by a Scottish trust deed and advisers at Scotland’s Trust Deed will be able to explain why this is such a popular route to resolve debts.
The big attraction, and you’ll need to owe more than £5,000 to enter a trust deed, is that it’s for a set period of time and at the end of this the debt that remains is written off.
For more help and information for people living in Scotland and struggling financially then it’s time to speak with the debt adviser experts at Scotland’s Trust Deed.