It can be a very difficult time when dealing with debts but there are debt solutions available for people living in Scotland.
Among the options that you may be able to consider will depend on what money you may have for repaying debts.
If you do have money, then you’ll need to deal with the urgent debts first.
That’s because some debts are more important than the others are because they carry more serious consequences when you do not pay them. For example, not paying the rent or mortgage could see you losing your home.
Also, if you do have money to pay off a debt then you’ll need to work out the best way of doing this. For example, you can deal with creditors directly, those are the people and firms you owe money to.
Alternatively, you could consider a loan consolidation where you put all of your debts into one loan or you could consider a Scottish trust deed.
Apply for a Scottish trust deed
You’ll need to apply for a Scottish trust deed and there are criteria over who can apply and you’ll need to owe more than £5,000 to do so.
There’s also the debt arrangement scheme, which was created by the Scottish government to help people in Scotland repay their debts.
To some, the Scottish trust deed and the debt arrangement scheme may appear to be very alike, but they have one important distinction.
With a trust deed, a Scot in debt will repay an amount of money every month that they can afford and this will be an arrangement that will last for up to four years.
When this arrangement comes to an end, there will be an amount of debt remaining and this will be written off.
Sign up to the debt arrangement scheme
As with the trust deed, for those who sign up to the debt arrangement scheme, then you will repay an amount of money every month that you can afford but you will repay all of your creditors under the agreement.
There’s also another option for people struggling with debt in Scotland and that is bankruptcy, it’s also known as sequestration, but a lot depends on your financial situation currently and you’ll need to take advice before pursuing this debt solution route.
Indeed, all potential debt solutions have advantages and disadvantages, so you should gather as much information as you can and speak with an impartial adviser before you make a decision.
It’s also important that you do not sign anything unless you believe that the debt solution is the best option for you.
If you are seeking impartial and helpful advice, then there’s a team of advisers at Scotland’s Trust Deed who will be able to help.
If you have no money left for paying debts
They may also discuss, if you have no money left for paying debts, about the prospect of creditors writing off your debt.
They may also highlight the prospect of debt management plans, which is an informal arrangement to repay debt to your creditors.
As mentioned earlier, this advice from the Scotland’s Trust Deed’s debt advisers will be impartial, so you don’t have to follow it though it may help to speak with someone who understands your situation and the potential for resolving debt.
If you would like more information about debt solution options available in Scotland, including the Scottish trust deed and the debt arrangement scheme, then it’s time to contact Scotland’s Trust Deed.