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.
How debt advice in Scotland can help
For debt advice in Scotland, admitting there is a problem and asking for help is one of the best things you can do if you find yourself in financial difficulty. Ignoring the problem will lead to increases in the debt, interest, un-manageable re-financing and charges.
Scotland’s Trust Deed encourages everyone to ensure they are accessing all of the benefits and financial support they are entitled to. Receiving a little extra cash per month may just make all the difference between easily paying the minimum amount on a credit card and falling sort and getting default charges each month.
One charity in Scotland dealing with debt says it has carried out research and revealed there are 450,000 cases of benefits that are yet to be claimed.
If your family could be one of those not receiving what you should, then it’s time to act as it could make a huge difference to your lives and financial situation.
Pride and a lack of knowledge are the two main causes of people not claiming the money they are entitled to. The welfare system is in place to help the people who need it – we have all paid into the welfare scheme and so should be unafraid to ask for help at times of crisis.
Finding out more about debt advice in Scotland
When it comes to finding out more about debt advice in Scotland, the benefits that often go unclaimed are:
- Tax credits
- Reductions in council tax
- Help with utility bills
- Marriage allowance
- Housing benefit.
The people who often miss out on the support they are entitled to are usually the following:
- Full or part-time workers who assume it is only the unemployed who receive benefits
- People who have newly been diagnosed with a chronic or terminal illness.
- Those who are living with a disability
- Single parents
- Parents of young children who haven’t heard about help with childcare and playgroup places
- Individuals who are entitled to free prescriptions and/or dental treatment.
Debt advice is about more than accessing the extra cash you may be entitled to.
Debt advisors at Scotland’s Trust Deed
The friendly debt advisers at Scotland’s Trust Deed have many years of experience helping the people of Scotland with debt. What have we learnt in that time?
- Honesty about the debt is vital
- A commitment to saving money wherever possible is hugely important to getting out of debt and staying in the black
- The ability to and willingness to learn how to budget will help rectify a difficult financial situation.
Honesty, day-to-day savings and living within a budget also have a huge affect on the mindset of someone who is struggling with debt. They will begin to feel in control of their situation and begin to believe that a bright financial future is possible.
For help and impartial advice about debt in Scotland and ways to get out of it – which means the possibility of a Scottish trust deed or a debt arrangement scheme – then you need to call Scotland’s Trust Deed today.
More Scottish people are struggling financially
New poll results have shown that in the past few years there has been a significant increase in the number of Scottish people struggling financially.
This is something that the team at Scotland’s Trust Deed would agree with as we have witnessed a rise in the number of Scots turning to us for help.
Figures collated through consumer studies have revealed that the percentage of workers who are finding it difficult to get by on their present income has increased from 21% in 2017 to 25% in 2019.
These worrying statistics came from polling carried out by one debt charity in Scotland and a spokeswoman said: “These figures highlight the strain that people are under in Scotland. Many people who are in work are finding it hard to pay bills and put food on the table.”
Alongside this disturbing rise, there has also been a decrease in the number of Scottish citizens who feel that they are able to “live comfortably” on the amount of money they currently earn. In 2017, the figure was 38% and it’s now 35%.
Debt advisors at Scotland’s Trust Deed
The people being helped by the debt advisors at Scotland’s Trust Deed find themselves in financial difficulty due to the steadily increasing cost of living, wages that aren’t rising and government cuts within the social security system.
It’s important that Scots access the benefits they are entitled to. This can be done through the Financial Health Check service available from Citizens Advice Scotland and can reveal an entitlement to lower energy bills and council tax rates.
If extra money does not ease your financial pressures, then contact Scotland’s Trust Deed’s team of friendly, experienced and sympathetic professionals. They will be happy to go through the options available and check which you will be eligible for.
A Trust Deed
- This is a contract, bound by law, between you and your lenders. Once your trust deed becomes ‘protected’ it allows you to pay what you can afford.
- Scotland’s Trust Deed will conduct negotiations for you and appoint a ‘trustee’ who will oversee your finances.
- A Trust Deed will last 48 months.
- You must owe at least £5,000.
- All assets must be declared though you should be allowed to keep your home.
- You won’t be chased for money by your creditors once the trust deed is in place.
Debt Arrangement Scheme (DAS)
- A DAS is a tool used effectively by the government of Scotland to help people out of unmanageable debt.
- Your income and debts will be studied by a trustee and a budget decided upon.
- A scheme of lower, more affordable, payments will be agreed to.
- The length of time in which the debt will be re-paid must be ‘reasonable’.
- Your creditors won’t be allowed to harass you for more if agreed payments are made in full and on time.
Contact Scotland’s Trust Deed
Contact Scotland’s Trust Deed today for more information and advice about a Scottish trust deed, the DAS and other debt solution from our team.
Scotland’s personal insolvency rates go up
To help highlight how many Scots are struggling with debts, it has been revealed that there has been a 20.6% increase in the number of Scots going through the insolvency process in Scotland.
That equates to 12,788 extra people opting on this route to help solve their financial problems.
The figures, from the Accountant in Bankruptcy, relate to personal debt and include both sequestration and protected trust deeds in 2018 and 2019. The biggest increase has been in the type of protected trust deeds that the team at Scotland’s Trust Deed specialise in.
What is a Trust Deed?
A trust deed is a financial solution for people who would prefer to avoid the impact that full sequestration can have on their lives and this year there was a 32.8% increase in the number of people taking this option.
Your trust deed will be an official agreement between you and the creditors you owe money to. Scotland’s Trust Deed will negotiate with your creditors on your behalf and if successful your trust deed will become ‘protected’.
Protected status means that you will pay a significantly reduced figure over four years. Keeping up with the payments negotiated will ensure that no creditor is permitted to chase you for payment or make threats about taking the matter to court.
Scotland’s Trust Deed is also experienced in providing qualifying customers with Debt Payment Plans (DPP) that may lead to Debt Arrangement Schemes (DAS). These too have seen an increase with 2,544 agreed in the 2018/19 financial year – that’s 226 more.
The data that the Accountant in Bankruptcy has collected shows a consistent increase in personal insolvency over the past three years. This makes for alarming reading, but the figures aren’t as high as the insolvency increases in the years 2007/8 and 2013/14. Periods of uncertainty lead to higher rates of unmanageable of debt.
According to Scotland’s business minister, Jamie Hepburn, he says the current insolvency figures are down to uncertainty around Brexit and the ongoing issues with Universal Credit.
Mr Hepburn also said that he is pleased that the Debt Arrangement Scheme, which Scotland’s Trust Deed can help with, is being used by people in trouble with debt.
He said they provide ‘controlled repayment of debt without fear of further recovery action being taken’.
Trust deeds and the DAS are becoming the preferred choice for Scottish people fighting their way out of debt. They allow debtors to keep their homes and don’t threaten positions as the Director of a company or within certain careers. Sequestration truly is the last resort and should be given careful thought.
Do you live in Scotland and have your debts become a struggle to finance? Are you looking for a solution to your financial problems? Then contact the team at Scotland’s Trust Deed today for support and advice.