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Scots who are struggling with debt and are worried about how they are going to pay for Christmas presents are being urged not to use payday loans to do so.

That’s because a campaign has been unveiled that will help educate Scots on their rights when they borrow from payday loan lenders.

The campaign is being run by a charity and the Scottish government and offers budgeting tips to help Scots avoid borrowing money at an exorbitant rate.

The advice being offered also highlights the role that credit unions play and why it’s important that everyone borrowing money should check the APR percentage figure and not just how much will be paid every month.

A spokesman for the campaign said: “Many of us are tempted to overstretch our finances with Christmas just around the corner, what with dinners, parties and gifts that need paying for. We may wake up in the New Year with a nasty financial hangover.”

Banks have strict lending criteria

He added that since banks have strict lending criteria on who they will lend money to, including their ability to make repayments, for many Scots their only alternative is to use payday loans, which are easier to obtain. However, they tend to have a much higher rate of interest and take much longer to repay.

The spokesman added: “For those who are in debt already, then they will get deeper in the further high interest cycle trying meet their loan repayments and their other monthly bills.”

For anyone in Scotland struggling with debts, there are a number of solutions available to get into better financial health. Among the solutions is a debt administration scheme (DAS) that enables someone living in Scotland to repay all of their debts at a lower, more affordable rate.

Popular way for Scots to get out of debt

The Scottish government-run scheme has proved to be a popular way for Scots to get out of debt.

Alternative routes include sequestration, which most of us know as bankruptcy but you will need to be very careful before going down this route and you should speak with experts.

It’s helpful that Scotland’s Trust Deed has a team of experienced debt advisers available to discuss a debt administration scheme as well as a trust deed.

The trust deed is similar to the DAS except that when the agreed period for repayments comes to an end, the amount that remains is usually written off.

Scottish trust deed’s criteria

That’s a great solution for many people who are struggling financially but you must maintain your repayment plan to ensure you meet the Scottish trust deed’s criteria.

In addition, there are other potential debt solutions for people living in Scotland, including for those who may not qualify for a trust deed, a debt management plan, debt write-off, informal negotiation and debt consolidation.

For more help about how people in Scotland can resolve their debts, then it’s time to speak with the friendly team at Scotland’s Trust Deed on (0141) 297 1178 in confidence today.