Alarming figures for the financial year 2018/19 show that personal sequestrations (better known as bankruptcy) have risen by 5% in Scotland.
Even more worrying is that the number of bankruptcies in the first three months of this year have increased by 14% in comparison with the same time last year.
The Scottish Government has revealed that 13 Scots are going bankrupt every day due to various pressures including, they say, welfare cuts and the controversial roll-out of Universal Credit.
Businesses in trouble are also increasing in numbers with 9.3% more going bust in 2018/2019.
These official numbers from the government and the Accountant in Bankruptcy organisation tell the story of ordinary working people in crisis and financial hardship. These are people with families who need help to get themselves back on the road to a brighter future.
Best debt solving solution
Jamie Hepburn, the business secretary, has urged anyone struggling with money to seek advice as soon as possible and to choose the best debt solving solution for their individual circumstances.
The Debt Arrangement Scheme is a government-backed plan which individuals can utilise to get themselves back on track with debt without making the giant step into insolvency.
The number of people signing up for a Debt Arrangement Scheme with experienced companies such as Scotland’s Trust Deed has risen by 9.7% in the last financial year with £37.6 million being paid off personal debts. It’s encouraging that bankruptcy alternatives such as these are becoming more popular.
Jamie Hepburn has been quoted as saying “the challenging economic times we are facing” have led to “more Scots experiencing increased financial pressures.”
What to do if you’re struggling financially
- Don’t avoid the problem. The sooner you act the better as late payment fees, interest charges and fines won’t go away by themselves.
- Contact an expert. At Scotland’s Trust Deed our team has a huge amount of knowledge and experience.
- Make sure you choose the right debt management option for your circumstances. Sequestration should be the last resort.
- Trust Deeds are only available in Scotland and the number of them being set up has increased by a huge 40% in the last year.
- As suggested in this article, if you don’t qualify for a Protected Trust Deed, then a Debt Arrangement Scheme could be another powerful solution to your financial problems.
How does a Debt Arrangement Scheme (DAS) work?
- A DAS is a scheme backed by the Scottish government.
- Make lower payments over a longer time period so that your debt is more affordable.
- Unlike a Trust Deed you will be expected to pay your debts in full. There will be no negotiation with your creditors over having a proportion of your debt written off.
- You will regain control. Your payments per month will have been agreed by a DAS counsellor to ensure you can pay without struggling to pay the rest of your bills.
If you think that a Trust Deed or DAS might be the right option to put you back in control of your finances, then contact Scotland’s Trust Deed for friendly, expert and impartial advice.