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Money, finances and debt are taboo subjects for many people. When your financial situation is difficult it becomes even more of a struggle to be honest, to communicate with others and seek help.

Scotland’s Trust Deed staff are here to offer impartial, friendly and expert debt advice so there is no need to suffer the stress alone. We’ve created this handy guide to give you an idea of how to begin your journey towards financial freedom.

What to do first.

  • Be honest with yourself about how much you owe.
  • Seek advice as soon as you know that you have a problem. Don’t let charges and interest make the situation worse.
  • Contact a professional, approved money adviser or insolvency expert. They will assess your income, your outgoings and help you decide which debts should be paid first and how much those payments should be.

Try and negotiate with your debtors yourself.

This is the best option and should be tried before anything else. Contact the creditor the moment that you become unable to make a repayment. They will hopefully appreciate your honesty and allow payment at lower rates over a longer time frame.

Seek advice on how to increase your income.

A professional adviser such as Scotland’s Trust Deed will help you with your budget and potential benefits you could be missing out on.

Set up a Debt Arrangement Scheme (DAS)

A DAS is a government-backed agreement. Your debt will be paid back fully, there will be no stress placed on you by creditors and legal action will not be threatened.

A scheme administrator will be placed in charge of your case and they will receive one affordable amount from your excess income (money left after necessities such as bills, food and petrol.)

Any late payment charges or interest will be put on hold meaning that careful budgeting and regular payments won’t be de-railed by nasty surprises.

This is a good long-term solution and will last until your creditors have been paid off.

Trust Deed

Scotland’s Trust Deed have years of experience in helping our customers arrange their Trust Deeds. A Trust Deed is only available in Scotland and it is what we recommend as an alternative to sequestration.

A Trust Deed will last between four and five years and any debt left at the end of the term will be written off.

We will negotiate with your creditors after carefully going through your finances and budget with you. Once the Trust Deed has been agreed it is illegal for them to contact you.

A Trust Deed doesn’t require the sale of your house. In the last year, you will be expected to try to re-mortgage to release money to pay of your debts.


This should be your last resort as sequestration will have a significant impact on your life, finances and assets.

Control of your assets, including your home and car, is given to a trustee and it is likely they will be sold to pay off your debts.

Access to a bank account, credit and certain jobs will be restricted and your sequestration will be on public record.

If you want to know more about dealing with debt in Scotland, then you need to speak with the friendly team at Scotland’s Trust Deed.