If you are struggling with debts then you may be wondering, or may have searched online, ‘What is the debt arrangement scheme Scotland?’
Essentially, the scheme is only available to people living in Scotland and enables them to repay their debts at an affordable rate without charges or interest being added to it.
In addition, the scheme offers legal protection and will prevent creditors from contacting you.
For many people, this alone will bring peace of mind and help them deal with the stress that being in debt brings.
However, it’s important that you seek impartial help and advice before signing up to the debt arrangement scheme and understand what the criteria for this is and whether it is suitable for you.
Debt advisers at Scotland’s Trust Deed
While the team of debt advisers at Scotland’s Trust Deed can help, you will need to be living in Scotland and have at least one debt before applying.
This scheme is run by the Scottish government and you need a qualified money adviser to assess your financial situation and work out how much money you have at your disposal so the payments under the repayment plan will be affordable.
We’ve already mentioned some of the advantages for signing up to a debt arrangement scheme and for Scots who are struggling financially, then they will need to appreciate that their credit rating could be affected when signing up.
That’s because once you are accepted onto the debt arrangement scheme there is a register of those who sign up and anyone can access this.
Distinction between the debt arrangement scheme and a Scottish trust deed
It’s also important to highlight an important distinction between the debt arrangement scheme and a Scottish trust deed to avoid any confusion.
Under a Scottish trust deed, you will repay your debts at the rate you can afford and this could be up to 48 months at the end of which the amount of debt that remains will be written off.
That’s not quite the case with a debt arrangement scheme; you will repay what you can afford until all of the debt is cleared.
Under the scheme, all unsecured debts can be included and there’s no minimum requirement of debt level before being considered for the scheme.
Under a Scottish trust deed you’ll need to have at least £5,000 of debt to be considered.
The debt arrangement scheme has proved to be popular
Since its inception, the debt arrangement scheme has proved to be popular and has helped thousands of Scots out of debt and into a better financial situation and this scheme could work for you if you are currently living in Scotland and struggling with repaying your debts.
If you need impartial advice about whether the debt arrangement scheme is for you, then there’s a team of friendly debt advisers available at Scotland’s Trust Deed to discuss the issue in confidence.