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Scotland’s Trust Deed has been helping Scottish people with money troubles for many years. We have a huge amount of experience, knowledge and understanding of how to assist our customers to regain control, financial freedom and peace of mind.

A charity, which also offers debt advice, has reported that Scottish debt is on the increase. The organisation says it has helped over 30,000 people in the year 2018-2019 and have announced that the cost of these debts to the government was £750 million.

The people who were helped last year had only £12.64 left, on average, after paying for their homes, utility bill and taxes. The shortfall, to pay for food, transport and other essentials, was financed largely through credit cards, loans and overdrafts.

Families are finding themselves spiralling into debt

Low-income families are finding themselves spiralling into debt and the number struggling to cope, according to the charity’s figures, is around 700,000. The main source of debt is council tax with the average amount of arrears at £2,017.

The charity has called for local authorities to give people a ‘fair chance’ to pay their debts within an affordable time frame. Aggressive tactics to force payments with fines and threats of court action is ‘making the situation worse’.

A spokesman from Cosla, a local government organisation, has insisted that the situation is being taken seriously and that: “All councils will have plans and procedures in place to help people with their arrears.”

Research into debt in Scotland has found that poverty, low-quality housing, cuts to welfare, sickness and job losses are all to blame. The number of people falling behind with bills and turning to initiatives such as Debt Arrangement schemes (DAS), Trust Deeds and sequestration (bankruptcy) is rising.

Seek debt help and advice as soon as possible

Mental health issues such as depression and anxiety are closely connected to financial hardship. It is important that people seek debt help and advice as soon as possible. Ignoring or avoiding the problem will only make it worse and late payment fees, interest and stress can be avoided if the right steps are taken.

Sequestration is one option open to people with severe, unmanageable debt. It’s a huge step to take however and should be considered only as a last resort after DAS and Trust Deed routes have been explored first.

Scotland’s Trust Deed has a team of friendly, experienced, and impartial staff who are on hand to help those in debt with questions, advice and debt management services.

The advantages and disadvantages of sequestration

  • It will clear any unsecured debt you can’t afford to pay.
  • Your living costs will be easier to manage.
  • Free of unsecured debt in one year.
  • Legal protection from your creditors.
  • You will make a regular, affordable payment toward your debt if you have a reliable income.
  • Your assets can be sold off to pay off your debts.
  • The sequestration will be recorded on the Insolvency Register.
  • Employment opportunities may be affected in the two years after sequestration, certain jobs cannot be held by people who have been through sequestration and your self-employment may be curtailed.
  • Your credit score will be affected for six years.
  • Bonuses, windfalls and inheritance will need to be paid to the Trustee.

If you need help and advice about debt or sequestration from a trained advisor, then call Scotland’s Trust Deed today.