Are you experiencing a debt crisis? Are creditors ringing daily demanding money? Perhaps you can’t afford to make the minimum repayments to your debts because of interest rates?
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 talk to us.
Our advisers are specially trained to give money advice and debt help to people in Scotland, and can help guide you out of financial crisis. 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.
An Overview Of The Most Common Scottish Debt Solutions
In This Guide...
Scottish Trust Deeds (Scotland Only)
A Scottish Trust Deed is one of the more common choices for getting out of debt in Scotland.
The timescale for a Trust Deed is usually 48 months, meaning you can be free from the pressures of debt in 4 years. The minimum criteria is £5,000 of unsecured debts. This can be; unsecured loans, credit cards, council tax, utility bills and benefit over-payments.
Trust Deed’s go one important step further than a debt management plan as they are formal, legally-binding agreements arranged by Insolvency Practitioners (IP) where you pay your creditors only what you can afford every month for a set period of time, usually 48 months. After which, any remaining debts are written off.
All charges and interest on your debts are 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.
Creditors totalling 75% of your debt must agree to it or you cannot go forward.
As it is a legal agreement, you must not miss payments or your creditors may use the opportunity to attempt to sequester you.
Debt Arrangement Scheme Scotland
The Debt Arrangement Scheme (DAS Scotland) is not insolvency, it is the only statutory debt management plan in the UK.
It gives some much-needed breathing space and allows the individual to repay their debts in full through a debt payment programme over an extended period of time.
If you enter into the Debt Arrangement Scheme all interest, fees and charges are frozen and you are given protection from the threat of any legal action from your creditors over your debt.
Sequestration is Scotland’s equivalent of bankruptcy.
Sequestration is a formal method of dealing with debts if other options have failed or are inappropriate. There are consequences of bankruptcy and no one should make an application for bankruptcy without being fully aware of the alternatives and seeking advice at an early stage.
If you are declared bankrupt, a trustee will be appointed and will have the legal authority to take action to recover funds due via a regular contribution, or from any assets you own, including your home.
All assets, including property, will be investigated by the trustee and where necessary sold.
Quick and simple to setup, a Debt Management Plan can reduce hassle from your creditors and get you one lower, affordable monthly repayment. It is good as a temporary measure to relieve the stress of debt, i.e. if you lost your job or your income was reduced.
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.
One of the advantages of this option are that you don’t have to deal with the creditors alone. The bad news is it could take 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.
It won’t stop persistent creditors from still writing and calling you because it is not a legally binding agreement.
Full and Final Settlements
Full and final settlements are a way of settling your debts with your creditors in full. Depending on your circumstances you can save up to 80% on your debts, meaning you can repay as little as 20% as what you owe. You must have the funds available to do this in the form of savings or in equity.
Having Confidence In Your Debt Advisers
When looking for advice, it can be hard to know who to talk to.
It’s difficult to know which debt advice company will give you the best debt advice for you based on your lifestyle, needs and affordability.
The Scottishtrustdeed.co.uk website is run by Harper McDermott Ltd who also trade as Trust Deed Scotland. Having given debt advice since 2009, Trust Deed Scotland have helped thousands of people in Scotland with their debt.
Authorised and regulated by the FCA (Financial Conduct Authority).
Free debt counselling, debt adjusting and providing of credit information services is available to customers by contacting MoneyHelper.
For tailored debt advice in Scotland, you can browse the rest of this website or just have a chat with someone about your debts by giving us a call on 0141 456 0430. You can also contact us here.
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