For those people living in Scotland who are struggling financially, you may have heard about debt consolidation and this article will help.
The main aim for debt consolidation is to repay all of your debts with a loan at a lower repayment rate, usually over a longer period of time.
For many people, this is a simple debt solution that they can work with.
Essentially, debt consolidation will see you combining your current debts into just one consolidation loan, so your income will then be freed-up and you can spend money on what you need.
A debt consolidation loan should not be confused with a Scottish trust deed as you will be repaying your debts in full and your loan repayments will be much lower.
Debt advisers at Scotland’s Trust Deed
However, whether debt consolidation is the right debt solution for you needs careful thought and it’s worth speaking with the team of debt advisers at Scotland’s Trust Deed.
Along with debt consolidation, the advisers may also talk about a debt management plan to tackle your debts or negotiating with creditors for a full and final settlement of what you owe.
Along with remortgaging and discussing a debt write-off with your creditors, there are other debt solutions available for those living in Scotland.
Indeed one of the issues for debt consolidation is that this can be a risky solution, so you’ll need to consider very carefully before you begin undertaking it.
One of the problems is that if you take out a large loan and the repayments become unaffordable then you may be forced into using other types of credit, which will make your debt situation worse, rather than resolving it.
The Scottish trust deed
As mentioned, there are other debt solution routes for those living in Scotland and the Scottish trust deed is a popular method to become debt-free.
With a protected trust deed, you will agree to repay your debts at a set rate for around four years. The rate that is agreed is affordable and the amount of debt that remains at the end of this period is usually written off.
That will be of huge help to many Scots and there’s also the potential of a debt arrangement scheme.
The scheme is similar to a trust deed, except you will repay everything you owe to creditors but at an affordable rate so you can free-up money to enjoy life once more.
Resolving debts in Scotland
There’s a lot to consider when it comes to resolving debts in Scotland and while taking out a loan for debt consolidation may be right for you, it may not be right for everyone.
This is where the experienced debt advisers at Scotland’s Trust Deed can offer the impartial advice you may be looking for to see which is the best debt solution for your circumstances.
You can contact the friendly team at Scotland’s Trust Deed to discuss these potential solutions with a confidential phone call and their advice will be helpful and you are under no obligation to follow it. You can contact the team today on (0141) 297 1178.