Making sure you find the right money advice and debt help in Scotland
Are you experiencing a debt crisis? Are creditors ringing daily demanding money? Perhaps you can’t afford to make the minimum repayments on your debts because interest rates have rocketed sky high on your accounts. Do you feel there is no possible debt help in Scotland that could sort this out besides sequestration?
You need to take decisive action quickly, but getting the right debt help in Scotland isn’t always easy. In fact, you may believe finding debt help in Scotland that takes away the unbearable stress is almost as likely as winning the lottery!
But it won’t be if you come and talk to us.
Our advisors are specially trained to give money advice and debt help in Scotland, and will help guide you out of debt crisis. They believe all debt problems have a solution - it’s just a matter of finding the right one to fit your current circumstances.
For example, you may have got to this point because:
Your living expenses have risen and bills are unaffordable
You or your spouse have suffered a long-term illness or disability
Your salary has dropped because of reduced hours or a job change
You are separated or divorced and your household income has dropped
However it has happened, your hard-earned cash is now spread so thin you cannot manage your debt effectively any more. Yet you have more options for debt help in Scotland than you think.
The most common options for debt help in Scotland – DMPs and Trust Deeds
One option for debt help in Scotland is a simple debt management plan (DMP). You appoint a representative to talk to all of your creditors and try and negotiate a way forward based on what you can afford to pay them every month. They may help you negotiate full and final settlements, get interest and charges frozen, and distribute your payment to creditors every month. The advantages of this option for debt help in Scotland are you don’t have to deal with the creditors alone and you stand a chance of one day paying back your debt instead of watching it spiral. The bad news is it could take many, many years to pay your debt back. For example, if you owe £25,000 and pay off £250 a month, it could take you a minimum of 8 years to pay off your debt. Will your creditors be that patient? If not, it won’t stop very persistent creditors from still writing and calling you because it is not a legally binding agreement.
Another option for debt help in Scotland is Trust Deeds, the Scottish equivalent of Individual Voluntary Arrangements (IVAs). These go one important step further than a DMP. Trust Deeds are formal legally-binding agreements arranged by Insolvency Practitioners (IP) where you pay your creditors only what you can every month for a set period of time, usually 48 months or 4 years. After that, any remaining debts are written off. All charges and interest on your debts are generally frozen and your creditors can be legally prevented from contacting you. You simply forward your payments to your IP and they take care of the rest.
Make no mistake about this seriousness of this type of debt help in Scotland - it is often the last alternative to sequestration, but it is an effective debt-busting option. You will be debt-free much more quickly and you will no longer have the hassle of dealing with creditors. However those creditors totalling 75% of your debt must agree to it or you cannot go forward. Also as it is a legal agreement you must not miss payments or your creditors may use the opportunity to attempt to sequester you.
Finding the right money advice and debt help in Scotland is your first step to a happier debt-free future, so give our experienced advisors a call today on 0800 193 1024and find the right debt solution for you.
Trust Deed Example
Example Unsecured Debts
|2||Credit card 1||£6,812|
Your Monthly Repayments Would Be
a Scottish Trust Deed £748
(total contractual repayments)
a Scottish Trust Deed £295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances. For more information on our fees click here