If you are a Scot struggling in debt and living in Scotland, there are a number of routes to financial health that are available to people who live in the country.
For those wanting advice and help on their debt situation, a number of charities and organisations can help but since there are a wide range of them, who should a Scot trust?
One of the leaders in the debt advice sector is Scotland’s Trust Deed who have a team of experienced debt advisers available every day to talk through the range of options available to people living in the country.
For instance, the advisers may discuss the options available under a Debt Arrangement Scheme which is a Scottish government scheme for people living in Scotland.
The Debt Arrangement Scheme, or DAS as it is better known, was created to help Scots who cannot afford to meet their current repayments every month for things like overdrafts, credit cards and loans.
Under DAS, a debtor will agree to make the repayments over a longer of time which has to be agreed by creditors.
Essentially, all of the debtor’s essential bills such as living costs including the rent or mortgage as well as council tax are taken into account and the remainder is used to make the repayments.
Big attraction for DAS is charges and interest are stopped
The other big attraction for DAS is that the lender will stop charges and interest being added to the account and repayments will take as long as necessary for the amounts to be repaid.
It’s important, however, to remember that the agreement is legally binding and helps protect against further action from a lender.
Other legal arrangements include a trust deed which is attractive to some because they will make lower repayments for up to four years with the remaining amount then written off.
Again, creditors need to agree to a trust deed which is only for debts of more than £5,000 and it should be appreciated that a trust deed is effectively a type of insolvency and it’s only available to people living in Scotland. Trust deed Scotland have a quick and easy to use calculator that gives you an instant online answer.
Another type of insolvency is Sequestration, again this is only available to Scots, and as a type of bankruptcy the consequences of agreeing to it should be explained fully.
Under sequestration a trustee is appointed
Under sequestration, a trustee is appointed to look after the debt and the creditors will only deal with that trustee.
Again, an assessment is made of the debtor’s outgoings and income with the balance used to pay the debt for up to four years and the remaining debt being written off. If you own your home it may be sold to help pay lenders.
Debt advisers might also suggest debt consolidation as a way to improve a financial situation and help is available to reduce monthly repayments to creditors.
This route may be the best solution for those who are finding debt a growing problem and this may bring spiralling debts under control.
There’s also the possibility of getting a debt management plan in place which will also lead to lower repayments for unsecured lending such as credit cards and bank loans.
In this situation, a debt adviser will contact creditors to discuss the situation and ask them to freeze charges and interest as well as accepting a reduced monthly repayment.
For Scots struggling with their money situation
For many Scots struggling with their money situation, it’s important to seek advice as early as possible because the ongoing struggle may lead to stress and worries and the longer a situation is left may limit the opportunities available to resolve it.
For impartial advice on the debt solutions that may be available, the team at Scotland’s Trust Deed will be happy to help and anyone contacting them is under no obligation to act on their advice or, indeed, choose to use the organisation’s services.