How Scots can resolve their debts in 2020
If you are one of the growing numbers of Scots struggling with debt, then 20 20 might be the year for you to resolve this situation.
The team at Scotland’s Trust Deed have lots of experience in helping Scots get out of debt and into a better financial situation.
There are debt solutions available to people living in Scotland and they include:
- A Scottish trust deed
A trust deed is a voluntary agreement between yourself and your creditors. Once agreed, you need to pay an amount every month and when this agreed period comes to an end, then the debt will be written off.
A Scottish trust deed is a popular route, particularly for those who may own their home, and you’ll need to have at least £5,000 in debt for the criteria for a trust deed to be agreed.
- The debt Administration scheme
Another popular route for Scots to get out of debt is a debt arrangement scheme. This is an opportunity for people to manage their debt effectively and was created by the Scottish government.
It is similar to a Scottish trust deed and once the debt arrangement scheme has been approved, then you’ll make one regular payment to what is known as the payment distributor who then pays that money to your creditors. While you cannot apply directly for the debt arrangement scheme, an application must be made on your behalf by an approved money adviser.
Pros and cons of a Scottish trust deed
Fortunately, Scotland’s Trust Deed has a team of experienced and friendly debt advisers who can make this application for you and also discuss the pros and cons of the scheme as well as a Scottish trust deed.
Both routes provide an opportunity to get out of debt and have proved to be popular with Scots, but you must maintain the agreement because doing so means your creditors can no longer hassle you for repayment.
Scotland’s Trust Deed
Scotland’s Trust Deed’s team can also discuss the potential of sequestration or bankruptcy and they can also discuss:
- A debt management plan
- Debt write-off
- Informal negotiation
- Debt Consolidation
- Full and final settlement
- Remortgaging or equity release.
Helpful free debt advice
There’s a lot to consider for people living in Scotland when it comes to resolving their poor financial situation and if you want confidential and helpful free debt advice from a friendly team, then you should contact Scotland’s Trust Deed today on (0141) 297 1178.
Scots lack of money plans at Christmas ‘will cost dearly’
The lack of financial planning by Scots who are already struggling financially this Christmas could cost them dearly.
According to one building society, Brits this year are looking to spend around two weeks wages on average in the run-up to Christmas Day.
We will spend £727 each on presents, decorations and food and drinks and with the average UK salary of £29,588 that is nearly two weeks of our take home pay.
However, the survey also highlights that 81% of those surveyed said they would probably overshoot their budget plans. And, more worryingly, 38% do not have a budget at all.
The findings highlight that of those likely to tackle Christmas without having a budget in place, men are more likely to do so at 42% than women are, at 33%.
Scots will have no budget in place
The survey also revealed that 44% of Scots will have no budget in place in the run-up to Christmas.
And a breakdown of what people will spend this year includes:
- Christmas presents: £363
- Christmas dinner: £37
- Christmas decorations: £21
- Snacks and treats: £26
- Christmas tree: £23
- Alcohol: £38.
Children will have the most money lavished on them on Christmas Day, they will receive £65 on average each and around a quarter of Brits say they will be spending more than £100 per child.
In addition to buying pricey Christmas pressies for family and friends, there’s also a need to buy ‘Secret Santa’ presents for work colleagues, the average cost is £20, and there is spending on Christmas party food and drinks and travel costs.
To help pay for Christmas, 26% of people buy items for the festivities throughout the year and 33% use savings to cover the costs. Another 34% will be turning to an overdraft, credit cards and personal loans to pay for Christmas, the poll reveals.
Financial planning is crucial
A spokesman for the building society said: “Financial planning is crucial to spend sensibly and people should set a budget that is affordable and stick to it.
“Christmas costs can quickly rack up with people spending two weeks of their salary paying for the festivities. It’s easy to spend more than we can afford and it’s also the reason why many of us begin the New Year in debt.”
If you live in Scotland and are struggling with debts, then it’s important that you get helpful and confidential debt advice.
For many people, it’s worth contacting Scotland’s Trust Deed to discuss what potential debt solutions are available so you can get back to better financial health and have enough money to pay for next year’s festivities without having to plunge into debt when doing so. Call the friendly team today on (0141) 297 1178.
Why Scots must avoid payday lenders this Christmas
Scots who are struggling with debt and are worried about how they are going to pay for Christmas presents are being urged not to use payday loans to do so.
That’s because a campaign has been unveiled that will help educate Scots on their rights when they borrow from payday loan lenders.
The campaign is being run by a charity and the Scottish government and offers budgeting tips to help Scots avoid borrowing money at an exorbitant rate.
The advice being offered also highlights the role that credit unions play and why it’s important that everyone borrowing money should check the APR percentage figure and not just how much will be paid every month.
A spokesman for the campaign said: “Many of us are tempted to overstretch our finances with Christmas just around the corner, what with dinners, parties and gifts that need paying for. We may wake up in the New Year with a nasty financial hangover.”
Banks have strict lending criteria
He added that since banks have strict lending criteria on who they will lend money to, including their ability to make repayments, for many Scots their only alternative is to use payday loans, which are easier to obtain. However, they tend to have a much higher rate of interest and take much longer to repay.
The spokesman added: “For those who are in debt already, then they will get deeper in the further high interest cycle trying meet their loan repayments and their other monthly bills.”
For anyone in Scotland struggling with debts, there are a number of solutions available to get into better financial health. Among the solutions is a debt administration scheme (DAS) that enables someone living in Scotland to repay all of their debts at a lower, more affordable rate.
Popular way for Scots to get out of debt
The Scottish government-run scheme has proved to be a popular way for Scots to get out of debt.
Alternative routes include sequestration, which most of us know as bankruptcy but you will need to be very careful before going down this route and you should speak with experts.
It’s helpful that Scotland’s Trust Deed has a team of experienced debt advisers available to discuss a debt administration scheme as well as a trust deed.
The trust deed is similar to the DAS except that when the agreed period for repayments comes to an end, the amount that remains is usually written off.
Scottish trust deed’s criteria
That’s a great solution for many people who are struggling financially but you must maintain your repayment plan to ensure you meet the Scottish trust deed’s criteria.
In addition, there are other potential debt solutions for people living in Scotland, including for those who may not qualify for a trust deed, a debt management plan, debt write-off, informal negotiation and debt consolidation.
For more help about how people in Scotland can resolve their debts, then it’s time to speak with the friendly team at Scotland’s Trust Deed on (0141) 297 1178 in confidence today.
Scots urged to save not spend at Christmas
Rather than spending money they don’t have and racking up more debt, Scots are being encouraged to save money this Christmas.
Financial experts say that Christmas should be a time for Scots to sort out their finances, rather than getting deeper into needless debt.
It turns out that around one in three of us are paying for Christmas presents, food and drink with our credit cards and the average personal debt now owed in the UK is more than £8,000.
Unable to meet debts
And every January, there’s an increase in those who are unable to meet their debts and so many will be left with a financial hangover that they’ll struggle to get rid of before Christmas comes round again.
So they will be trying to pay off what they spent this Christmas when they will be faced with having to spend lots of money all over again.
However, there’s still time to take a different approach with money saving experts saying it’s time to think differently about how we spend or waste money, particularly on presents that may never get used and for people we rarely see.
Indeed, one of the recommendations this year is that rather than buying presents for various nephews, nieces and grandchildren, the present giver should put money into a savings account or even start a pension for them.
Top tips to reduce spending
To help save cash this year, the money saving experts have put together their top tips to reduce spending at Christmas:
- Put together a gift list and stick to it – there’s no point buying presents on impulse and you only enjoy a bargain if it’s something you were going to buy anyway
- There’s a growing trend to offer homemade vouchers promising your services for housework, babysitting or even dog walking
- Go for a winter walk and collect twigs and pine cones that you can spray silver to create homemade decorations
- Try a portion planner for your Christmas dinner to keep the food costs down.
Struggling with debts
For those who live in Scotland and are struggling with their debts, then it’s advisable to seek advice on what you can do to resolve your financial situation.
Among the organisations offering debt advice is Scotland’s Trust Deed.
They have a team of experienced debt advisers who can discuss potential solutions, including a Scottish trust deed, bankruptcy or a debt administration scheme.
They are available to speak with every day on (0141) 297 1178 and their advice is confidential and impartial.
The debt solutions available in Scotland
For people who live in Scotland, there are a number of debt solutions available that are only applicable to those in the country.
Among the ways for Scots to get out of debt are:
- Protected trust deeds
- A debt arrangement scheme
For those who may not know, sequestration is the name for bankruptcy in Scotland.
Seek debt advice
However, it’s important that every debt solution should be considered carefully and you should seek debt advice on the potential options.
For those who may have some money to help pay their debts, then you need to make a list with the most important debts being placed first.
That’s because some debts are not only more urgent for repayment, but they may carry serious consequences if you don’t pay them.
For example, paying your rent or mortgage would be considered as a priority debt, so you should pay these first.
If you do have money for paying back debt, then you’ll need to consider how to go about doing this. Among the options are:
- You could contact your creditors yourself to discuss your options
- You could ask a debt management company to help deal with your creditors on your behalf
- There’s also the potential of a loan consolidation, which will see all your debts being placed into one loan.
A Scottish trust deed
As mentioned earlier, there’s also the potential of applying for bankruptcy, a Scottish trust deed or the debt arrangement scheme.
There are advantages and disadvantages to each of the potential debt solutions and you will need to consider them carefully.
This means you should get as much information as you possibly can before reaching a decision on which one will best suit you and your circumstances.
For those who may not have any money for paying off debts, then you could consider approaching your creditor with a view to writing off the debt that is owed.
You can also apply for bankruptcy directly.
Debt solutions available to people living in Scotland
However, one of the best ways to understand the potential debt solutions that are available to people living in Scotland, is to speak with the experts at Scotland’s Trust Deed to see which solution will work best for you. Contact the friendly team of debt advisers on (0141) 297 1178 today.