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If you are struggling to pay your bills every day, then there are options available for Scots to clear their debts effectively.

In addition to these bills, you may be struggling with other financial commitments, including loan repayments.

However, while this article will outline some of the potential options available, it’s important that you get independent and free expert advice and there are debt advisers available at Scotland’s Trust Deed for this purpose.

The aim of this advice is to help you decide which of the options is going to be the most suitable to clear or manage your debts.

For anyone who is struggling financially, it’s best to speak with someone as soon as possible rather than ignore the problem as it will get worse.

Advice for clearing debts in Scotland

The most important advice for clearing debts in Scotland is that you’ll need a solution that suits your personal circumstances so what might be a great scheme may be unsuitable.

First up, let’s have a look at the debt arrangement scheme. This is a debt management solution that enables someone who is living in Scotland to repay their debts over a longer period of time at a rate they can afford.

The big attraction when undertaking the debt arrangement scheme is that you are given protection from creditors who are trying to recover their money.

There are criteria for the debt arrangement scheme, including having at least one debt and you must be based or live in Scotland.

Also, you’ll need some money left over after paying essential bills, such as the rent and electricity and food.

A debt management plan

There’s also the opportunity of a debt management plan which can be arranged between you and your creditors.

With this arrangement, you will repay an agreed amount over a set period of time and a debt management company can arrange this on your behalf and then collect the money from you to share out between creditors.

There’s also the potential of a trust deed in Scotland, which is a voluntary agreement between your creditors and yourself to pay back most of what you owe.

The usual repayment period is three years and the amount of debt that remains when this is over is then written off.

If this sounds like a good idea, then you can apply for a trust deed if you have unsecured debts, such as loans, credit cards and overdrafts.

Again, you’ll need enough money left over after paying your essential bills to help pay down the debt.


In Scotland, there’s also the potential route of sequestration, which is better known as bankruptcy.

To apply for bankruptcy, you’ll need debts of at least £1,500 and have not been sequestration at any point in the last five years. You must also live in Scotland.

Another potential debt solution for Scots in debt include offering a full and final settlement for your debt to a creditor, so they may accept a part payment and then write off the remaining amount.

There’s also the potential of asking a creditor to write off your debt if you have no available income or any assets or savings and your circumstances will not improve in the future.

As mentioned previously, it’s important that you take impartial advice as soon as possible and the experienced debt advisers at Scotland’s Trust Deed are available to discuss the potential of any of the solutions mentioned here.