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Seek free and impartial advice

Advice about debt needn’t be from an expensive financial advisor. There are many charities and businesses who will happily offer guidance and practical help for free – Scotland’s Trust Deed has a team of friendly and experienced debt advisors ready to listen and help.

You should ask for help as soon as you begin to worry that you will be unable to pay your bills, rent or debts. The earlier you get back on a firm financial footing the better as you will avoid late payment charges, interest and court fees.

There are several options for clearing your debt and you should think carefully about which will suit you the best. This article will help you decide which is right for you.

A Debt Arrangement Scheme (DAS)

This is a free plan in which you pay back your debts at an affordable rate over an agreed time frame. Creditors will not be allowed to chase you for money while the DAS is in place.

A Debt Management Plan

A third party, usually a debt management company, will set up an arrangement between yourself and the companies you owe money to. This type of plan is suitable for low priority unsecured debts and consideration will be paid as to how much you can afford to pay after your bills and home have been paid for.

Trust Deeds

This type of debt management is only available in Scotland. You will pay back what you can afford of your unsecured debts over a three- to five-year period. Once the Scottish trust deed has ended, the balance of your debt will be cancelled. Your creditors will be unable to add interest, chase you or take court action.

Scotland’s Trust Deed are experts at helping our customers achieve financial freedom by advising on and arranging Trust Deeds.


This is the most severe of the debt management options and will have the most effect on your present and future circumstances.

Sequestration is a last resort for dealing with the debts you simply cannot pay. Assets such as your car and home may be sold to pay off some of your debts.

After the term of sequestration ends, usually a year, the debts not paid off with your assets will be written off.

Your credit rating, employment prospects and ability to own a business may be severely affected.

Lump sum payment

In some circumstances, your creditors may accept a single large payment towards your debt as settlement for the entire amount. Negotiation will be required.


In rare cases when there is proof that a debt cannot be paid and there is no hope of it ever being possible, terminal illness or a severe life-long condition, for example, a debtor can request that their debt be written off entirely.

In all cases of debt and financial hardship, advice from experts is needed. Scotland’s Trust Deed are here to listen and offer support, so get in touch as soon as you begin to struggle with your payments.