Examining the state of personal insolvency in Dundee, in addition to the rest of Scotland, is not as easy as it may seem. On the one hand, delinquency rates on consumer debts continue to be quite low.
Well under 2 percent of revolving lines of credit, construction loans and vehicle loans are in delinquent status. That is a positive indication because it suggests that consumers continue to have the ability to pay the minimum repayments on their debts each month.
Dundee Debt statistics
The news is not entirely good, however. Scottish consumers may be having little trouble paying on their debt, but their customer debt levels continue to rise. The average level of consumer debt reached a record high at the end of 2018, with Scottish owing approximately just under £27,500 to their lenders.
Overall home debt was even greater, having increased 5.5 percent during 2017. Although delinquencies are low, these figures have influenced the variety of people seeking assistance with their debt. Lots of debt advice companies have seen queries increase by as much as 10 percent as individuals start to fear that they will be unable to pay their debt.
If you are a homeowner of Dundee who is having difficulty making your debt payments, it’s important to look at all the debt relief options readily available to you, including the Scottish Trust Deed. Dundee homeowners who make the most of services such as the Scottish Trust Deed or debt arrangement scheme can materialize headway towards settling their debts and save money at the exact same time.
How Does a Dundee Scottish Trust Deed Work?
With the assistance of a licensed Insolvency Practioner, you put together a legal agreement to your creditors that minimizes your debt levels and interest charges if they accept it. Once a proposal is accepted, you pay to your lenders by means of your Insolvency Practioner in one monthly payment plan.
A Scottish Trust Deed in Dundee was introduced for those who do not want to file bankruptcy but have a high level of customer debt. You will get approved for a Scottish Trust Deed in Dundee if your debt is over £5,000. If your debt level is below this then the debt arrangement scheme is more suitable.
Should I apply for a Dundee Scottish Trust Deed?
The answer to this concern depends on your monetary situation and whether the advantages for you exceed the disadvantages of the Scottish Trust Deed. Keep these benefits and drawbacks in mind when you are thinking about whether to obtain a Scottish Trust Deed:
- A Scottish Trust Deed protects your properties and keeps costs collectors from calling you.
- If lenders holding 75 percent of your customer debt agree to the proposal, the other 25 percent needs to concur as well. This can force creditors who are not going to handle you to provide you beneficial debt terms.
- The interest on your debt is frozen the day you submit a proposition.
- If you can not get lenders holding 75 percent of your customer debt to consent to the proposal, you might lose out on the favorable terms offered by those who do accept it.
- A Scottish Trust Deed looks like a bankruptcy on your credit report, impeding your ability to get credit for about 6 years.
- A Scottish Trust Deed does not always get you the most favorable terms from each creditor. A licensed Insolvency Practioner is required to pay your creditors as much as possible.
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