Tips for Scots to avoid Christmas debt
For those Scots who are struggling financially then falling into Christmas debt can lead to a serious money hangover as they try to enjoy the festivities but these tips will help.
It’s important that for anyone who is in debt that they plan ahead and be realistic about any budgets they need to set.
You will need to work out how much you should be spending on each person for presents – and stick to it.
You may also need to manage expectations as to what Santa or you can give friends and family as presents.
However, it’s also important that Scots who are struggling with their debts do not forget their everyday bills.
This will include the rent, mortgage and utilities such as gas and electricity as well as food bills.
Crucial that current debts are still being paid
It’s also crucial that current debts are still being paid because non-payment can lead to severe consequences if not.
It’s important to have your priorities right, particularly at Christmas when there are more demands on any spare cash you may have.
Other tips include not having to bank on an overdraft to pay for presents and food because this will end up making things more expensive.
It’s also important to keep things simple, so if you can pay for goods with cash or a debit card, then do so.
Do not be tempted to take out extended credit agreements unless they are cheaper for accessing extra money. There’s no doubt that Christmas is a time for giving but for those in debt then you may be paying for presents and festive food that you cannot afford.
Overspending is all too easy when there are so many tempting offers to attract your attention and everyone is under pressure to buy.
Avoid getting into debt at Christmas
The guidelines to avoid getting into debt at Christmas, and into the New Year, is to plan and then budget properly and then organise yourself to avoid temptation.
For those who do get into financial difficulties, there is help and advice available including from the team of debt advisers at Scotland’s Trust Deed.
The advisers will be able to discuss confidentially things like a Scottish trust deed to help resolve your financial situation and also the Debt Arrangement Scheme.
For those with serious financial issues, then the prospect of sequestration, better-known as bankruptcy, can also be discussed.
Should you decide to speak with the team at Scotland’s Trust Deed, then you need to know that the information that is given is impartial, so there is no obligation to follow the steps that may be recommended to help solve your debts.
Advice about a Scottish trust deed
For more help and advice about a Scottish trust deed and the debt arrangement scheme then it is time to contact Scotland’s Trust Deed team.
Scots will be able to access interest-free loans
The government has unveiled an assault on payday lenders which could see Scottish families on low incomes being given access to interest-free loans.
The move would help around 3 million people in the UK struggling with problem debt.
The project will resemble a similar scheme in Australia that has helped for out of five people who were borrowing money from payday lenders to stop using those expensive loans.
In paperwork revealed that after the Autumn Budget, the government stated: “For some, borrowing from community and social lenders can be unaffordable. Therefore we will launch a study to design a pilot for next year for a no interest loan scheme.”
Scots struggling with problem debt
Chancellor Philip Hammond also announced plans to offer ‘breathing space’ for Scots struggling with problem debt and offer legal protection from their creditors from the current six weeks and up to 60 days.
A spokesman for one debt charity said that with the right ‘ambition in creativity’, then progress can be made on resolving problem debt for families.
The new scheme will see the government team-up with the banking industry and debt charities to offer the interest-free loans for those who are in most need.
There’s no doubt that payday lenders, as well as loan sharks, have created serious financial and debt problems for people living in Scotland who have found it difficult to repay what they owe and to access other forms of finance.
There are ways to resolve debt in Scotland and the friendly team of advisers at Scotland’s Trust Deed will be able to tell you more. This advice is impartial and confidential and what they tell you do not have to follow.
A Scottish trust deed
But if you do then you’ll find there are a number of solutions to meet a range of needs, including the debt arrangement scheme, a Scottish trust deed as well as sequestration, which is better-known as bankruptcy.
This last option can have serious implications and should be carefully considered before proceeding with.
Alternatively, the debt arrangement scheme enables someone living in Scotland to access this Scottish government run tool to repay everything that they owe to their creditors.
There’s also the option of a Scottish trust deed, which is only available for people living in Scotland, and they can repay their debts over a set period and the amount that’s left is then written off.
Scottish trust deed and the debt arrangement scheme
Both the Scottish trust deed and the debt arrangement scheme are proving to be increasingly popular because they are an effective way of repaying debts and getting onto a better financial footing.
For any help and advice about debt in Scotland and to learn more about the possible debt solutions, then speak with the friendly team at Scotland’s Trust Deed.
The Scottish Debt Arrangement Scheme is relaunched
The Scottish Debt Arrangement Scheme has been revamped in a bid to attract more people to sign up to the offering that helps deal with serious debt problems.
There are a number of changes including that debtors now no longer need to offer their disposable income as part of their proposal.
Someone applying to take part in the scheme will also not have to include rent or mortgage arrears into the debt payment programme.
The scheme also takes into account those Scots who may be risking attack or violence as they will now be able to prevent their name from being entered on the DAS register.
There’s also a requirement that those debtors who want to borrow whilst under the scheme not having to inform creditors unless they borrow more than £2,000.
Scottish debt arrangement scheme
The Scottish debt arrangement scheme has been held up as a model for the rest of the country as a way to offer effective help for those who struggle with debts.
Since its launch in 2004, the debt arrangement scheme has proved to be the most successful of all the debt remedies available in Scotland that sees money being returned to creditors.
The debt arrangement scheme is currently outperforming sequestration and protected trust deeds.
There’s a lot to recommend the scheme for people living in Scotland and who are in debt.
The friendly advisers at Scotland’s Trust Deed can offer more help and advice about how the scheme works and whether it will be right for you and your needs.
Scheme is a debt management tool
The scheme is a debt management tool created by Scotland’s government and enables someone who is living in Scotland to make more affordable monthly repayments, these tend to be lower than they have been paying, to repay their debts in full.
That’s because these repayments will be made over a longer period of time for this to happen.
While the scheme is similar to a trust deed, the big difference between the two is that under the scheme, all of the debt is repaid.
That’s not the same with a Scottish trust deed which will run for a set period, which can be up to four years and the amount of remaining debt will be written off.
If you want more help about the Scottish debt arrangement scheme or a Scottish trust deed, then it’s time to contact the experts at Scotland’s Trust Deed.
The new Financial Health Check service will benefit Scots
It comes with Scottish government funding and the new Financial Health Check service could benefit lots of low-income families in Scotland.
The idea for the service is to engage these families and pensioners so they can access financial advice that suits them.
The Scottish government says that more than 15,000 households every year will need help and advice on issues including how to reduce their household energy costs and also for accessing various grants.
The service will also help Scots to avoid the poverty premium of paying more for essential services and goods because they don’t earn enough.
The new scheme is available using a freephone number or it can be accessed via one of Scotland’s Citizens Advice offices.
‘The new financial health check service is open’
Eileen Campbell, the communities’ secretary, said: “The new financial health check service is open for business and is a key part for our work in tackling child poverty.
“We want to make sure that the family on a low income has the support they need for making the most of their financial situation and avoid paying more for basic services and goods that low-income families often face.”
The health check will cover things like benefit uptake, accessing free school meals, enjoying cheaper energy deals and the potential of a council tax reduction.
A spokesman for Citizens Advice Scotland, said: “Research shows that around half a million people in Scotland do not claim the support they are entitled to. This means families struggle to put food on the table and heat their homes and also miss out on financial assistance that could make a big difference.”
Access free and impartial debt advice
While the financial health check service is a great idea, it’s also possible to access free and impartial debt advice from experienced advisers for those who are in debt.
Their advice does not have to be followed, but most people will find what the adviser has to say interesting and helpful.
There will be a number of routes available to those who are living in Scotland and who are wanting to resolve their debts and these include a trust deed and the debt arrangement scheme.
Both of these provide an opportunity for a Scot to repay what they owe at a much lower rate to their creditors – that is the people and organisations they owe money to.
While both have similar criteria, there are important differences to appreciate.
The debt arrangement scheme
While the debt arrangement scheme can see people apply with a debt of various amounts, the trust deed is only available to those who owe more than £5,000.
Also, the trust deed is set up to run for an agreed period of time, this can be up to four years, and at the end of this, the debt is written off.
For those who agree to the scheme, all of the money they owe will be repaid.
If you would like to know more about repaying debts effectively using a protected trust deed or a debt arrangement scheme, then it’s time to speak with the friendly team of debt advisers at Scotland’s Trust Deed.
Growing numbers of Scots are taking out a trust deed
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.