‘Debt still an issue’ despite lender’s collapse
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.
Tips on debt consolidation in Scotland
For those people living in Scotland who are struggling financially, you may have heard about debt consolidation and this article will help.
The main aim for debt consolidation is to repay all of your debts with a loan at a lower repayment rate, usually over a longer period of time.
For many people, this is a simple debt solution that they can work with.
Essentially, debt consolidation will see you combining your current debts into just one consolidation loan, so your income will then be freed-up and you can spend money on what you need.
A debt consolidation loan should not be confused with a Scottish trust deed as you will be repaying your debts in full and your loan repayments will be much lower.
Debt advisers at Scotland’s Trust Deed
However, whether debt consolidation is the right debt solution for you needs careful thought and it’s worth speaking with the team of debt advisers at Scotland’s Trust Deed.
Along with debt consolidation, the advisers may also talk about a debt management plan to tackle your debts or negotiating with creditors for a full and final settlement of what you owe.
Along with remortgaging and discussing a debt write-off with your creditors, there are other debt solutions available for those living in Scotland.
Indeed one of the issues for debt consolidation is that this can be a risky solution, so you’ll need to consider very carefully before you begin undertaking it.
One of the problems is that if you take out a large loan and the repayments become unaffordable then you may be forced into using other types of credit, which will make your debt situation worse, rather than resolving it.
The Scottish trust deed
As mentioned, there are other debt solution routes for those living in Scotland and the Scottish trust deed is a popular method to become debt-free.
With a protected trust deed, you will agree to repay your debts at a set rate for around four years. The rate that is agreed is affordable and the amount of debt that remains at the end of this period is usually written off.
That will be of huge help to many Scots and there’s also the potential of a debt arrangement scheme.
The scheme is similar to a trust deed, except you will repay everything you owe to creditors but at an affordable rate so you can free-up money to enjoy life once more.
Resolving debts in Scotland
There’s a lot to consider when it comes to resolving debts in Scotland and while taking out a loan for debt consolidation may be right for you, it may not be right for everyone.
This is where the experienced debt advisers at Scotland’s Trust Deed can offer the impartial advice you may be looking for to see which is the best debt solution for your circumstances.
You can contact the friendly team at Scotland’s Trust Deed to discuss these potential solutions with a confidential phone call and their advice will be helpful and you are under no obligation to follow it. You can contact the team today on (0141) 297 1178.
Record numbers ask for debt advice
One leading debt charity says it is dealing with record numbers of people asking for debt advice as people are increasingly ‘struggling to hang on’.
The charity says that it is the unexpected ‘life events’ that are the biggest source of debt-related problems.
Among the unexpected life events include becoming ill or having lost a job.
A spokesman for the charity said that the figures highlight the issue of problem debt in the country.
Growing issue of people falling into debt
He added that there is a growing issue of people falling into debt because of illness or reduced income, or they are increasingly relying on credit for paying their everyday expenses.
He added: “More households are struggling to hang on and cannot deal with future economic shocks.”
The charity says that debt levels are also increasing, with nearly one in three people having outgoings that are more than their income. The average shortfall is around £365.
The charity also says that non-mortgage debt is worth an average of £13,800, which is a 6% rise on 2016’s figure.
While those figures are shocking, for people living in Scotland there is help at hand.
Debt advisers at Scotland’s Trust Deed
That’s because there’s are friendly debt advisers at Scotland’s Trust Deed to discuss how to deal with your debts.
The conversation will be in confidence and impartial, so you will learn how to tackle problem debt and the steps you need to take.
The potential debt solutions in Scotland include sequestration or bankruptcy, but this is a serious undertaking and needs to be carefully considered.
There’s also the opportunity of a debt arrangement scheme, which is becoming increasingly popular as a way to repay everything you owe to creditors and enjoy life without debts.
You need to apply for the debt arrangement scheme and once the application has been approved, then you can begin repaying debts at a manageable rate.
A Scottish trust deed
There’s also the opportunity of a Scottish trust deed, so you will repay at a manageable rate for up to four years and your creditors will no longer be able to hassle you when a protected trust deed is granted.
You need at least £5,000 worth of debt to sign up for a trust deed, but the big attraction for this solution is that the amount of debt that remains after four years will be written off.
That will be of huge help to many Scots struggling with debts and if you want to know more about debt advice and the potential debt solutions you can enjoy, then you need to speak with the friendly team at Scotland’s Trust Deed today.
The options for Scots to deal with debt
Being in debt can be a stressful time but there are options for Scots to deal with their debts and become debt-free.
Firstly, if you have money to repay your debts then you need to deal with the urgent debts first.
That’s because some debts are more serious to deal with than others because they have serious consequences when they are not paid.
For example, paying your mortgage or rent is crucial and you’ll need to work out how to contact and deal with creditors.
Apply for a Scottish trust deed
There’s also the option of a loan consolidation or you could apply for a Scottish trust deed, a debt arrangement scheme or bankruptcy.
There are advantages and disadvantages for each of these potential options so you should research them carefully before you make a decision.
It’s also important that you do not sign anything unless you are sure that it’s going to be the best option for you to resolve your debts.
Seeking advice is always a good idea and there’s a team of friendly debt advisers available for this purpose at Scotland’s Trust Deed.
For those who have no money left for the repaying of debts, then your options are restricted.
You could apply for bankruptcy, but this is a serious undertaking, or you could ask your creditors to write your debt off.
The debt arrangement scheme
For those who may not know, the debt arrangement scheme was created by the Scottish government to help those struggling in the country manage their debts more effectively.
You need to apply to have your debt arrangement scheme approved and you make one payment with the money being sent to creditors.
Alternatively, you can arrange for a Scottish trust deed which is a legal agreement between your creditors and yourself.
With a trust deed, creditors can no longer take action against you or even bankrupt you, but you need at least £5,000 worth of debt to apply.
One of the advantages is that you’ll need to make regular payments towards your debts and after four years, if you’ve met the obligations, then the remaining debt is written off.
Experienced team at Scotland’s Trust Deed
If you are looking for impartial debt advice, then the experienced team at Scotland’s Trust Deed can help with years of experience and lots of satisfied clients.
Along with the debt solutions detailed here, there are other potential avenues to pursue that the team can discuss in confidence with you.
If you would like more help and information about how Scots who are struggling with debt can become debt-free, then it’s time to contact the team at Scotland’s Trust Deed.
Scots in debt feel pay day squeeze
One of the big issues for Scots who are struggling with debts is that they increasingly feel the ‘pay day squeeze’ by spending more than half of their income on the day they get paid.
Now accountancy firm KPMG has looked at the issue and found that one in four Scots are spending more than 50% of what they earn on the day it arrives in their account.
The startling statistic looks even more shocking when compared to the 2018 survey which revealed that just 12% of Scots were doing the same thing.
Utility bills, housing costs and food shopping are the three of the most common payday costs.
Also, 65% of Scots say that their rent or mortgage payment is their biggest outgoing.
Scots are saving less
The research also reveals that 43% of Scots save less than 5% of what they earn and 20% save nothing.
Of those Scots who have to find extra money each month, 13% turn to credit cards.
Worryingly, of those who spend over half of their income on pay day it is Millennials who will do so with 29% them admitting to this.
A spokeswoman for KPMG Scotland said: “The study highlights the precarious financial position for many in Scotland and there’s a big increase in the proportion of those spending a large portion of pay on the day it arrives in their account.”
If you live in Scotland, and this scenario sounds familiar to you, then it’s time to seek advice about what you can do with your debts.
Debt advisers available at Scotland’s Trust Deed
There’s a team of experienced and friendly debt advisers available at Scotland’s Trust Deed to speak with in confidence.
Any advice they give will be impartial, which means you don’t have to follow it, but you will learn ways to control debt and repay what you owe.
Among the debt solutions available for Scots include a trust deed, sequestration or a debt arrangement scheme.
A Scottish trust deed lets someone living in Scotland repay at an affordable rate with the remaining debt being deemed as unaffordable and written off.
For homeowners, this may be the ideal solution since they should be able to keep their home but the deed is a legal agreement you need to abide by.
Debt arrangement scheme
The debt arrangement scheme runs on similar lines but the entire amount will be repaid and you will continue life debt-free.
For more help and advice for Scots in debt who may be feeling the payday squeeze, then you should contact the friendly team at Scotland’s Trust Deed on (0141) 297 1178.