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.