Dealing with debt is one of the most stressful parts of life. The overwhelmed, desperate feeling experienced can cloud your judgement and decisions. At Scotland’s Trust Deed, we have written this short guide on your debt solution options to help you feel empowered to make informed and calm decisions.
How much do you owe and to who?
There’s no denying that this will be the most painful and daunting part of the process. Many people in debt avoid the issue for a long time and don’t have a clear idea of how much they owe.
Look at all the letters, statements and demands that have come through your door and create an accurate record of the amount owed and who it needs to be paid back to. Knowledge and acceptance is a powerful tool at this point.
The most important part of this process is working out how much money you have that could be used to pay off your debts.
- Take an honest and rigorous look at how much money you have coming into your household and how much you need to pay for your home, food, utilities, transport and other essentials.
- Look at where savings can be made in your day to day spending.
Which debt to pay first
If you do find yourself with money left over to use for your debt then Scotland’s Trust Deed urge you choose which creditor to pay first very carefully. Money owed which will lead to eviction, losing your home or court fines is the money you should pay back first.
What help do I need?
It’s possible that you will be able to deal with some creditors yourself. However, specialist help from Scotland’s Trust Deed may be required where negotiation is needed. Get in touch with us for impartial, friendly advice from our experienced team.
Research your options
- Apply for a Trust Deed with a company such as Scotland’s Trust Deed.
If your home is in Scotland then you can apply for a Trust Deed. This is an arrangement where unaffordable debt is written off and a scheme of payments is created. Negotiation with your creditors will be needed and it is not guaranteed you will be accepted.
- You could put all of your separate debts into one single loan with a loan consolidation.
Obviously, this option very much depends on your current credit rating and if you can afford the payments and interest. It’s a legally binding agreement so consider it carefully.
- Consider a Debt Arrangement Scheme (DAS)
A DAS will give you breathing space and time to pay your debts with smaller payments over a longer time period. It is a legally binding agreement and the payments must be made on time to avoid further issues.
- Bankruptcy (sequestration)
This is usually the last option. Your assets will be shared amongst your creditors so home owners may find their property at risk. Once out of the bankruptcy period you will be free of debt and able to start again.
For more help and advice about dealing with debt and for impartial advice, then contact the friendly team at Scotland’s Trust Deed today.