Dealing with debt in Scotland

Stressed out about debt? Don’t worry, help is at hand! Scotland offers a variety of options that can be tailored to your individual needs. A team of expert advisors will work with you to develop the best plan for getting back on track financially.

What is a Trust Deed?

Struggling with multiple debts? A Trust Deed in Scotland could be the answer. Combining all your unsecured obligations into one convenient and low monthly payment, you can finally have some financial freedom – especially once it’s complete as any outstanding debt is wiped clean!

A Trust Deed Can be an option if:

Protected vs Unprotected

A Trust Deed is a powerful tool for debtors, offering protection from creditors – if the majority of them agree to its terms. If that does not happen however, then it becomes ‘unprotected’, and creditors could take more direct action against you with regards to any money owed by you.

What are the advantages of a Trust Deed?

What are the disadvantages of a Trust Deed?

Debt Arrangement Scheme (DAS)

The Scottish Government has implemented a formal solution to tackle debt issues: the Debt Arrangement Scheme. It’s an innovative program that offers relief and stability in financial matters.

Struggling to pay off your debts? Don’t worry – there’s help available! A Debt Repayment Plan (DPP) can be set up, allowing you to make one affordable and manageable payment each month. An official money advisor will need to apply on your behalf if this is something that appeals. So don’t delay – get started today towards financial freedom!

DAS maybe an option if:

Advantages of a DAS

Disadvantages of a DAS

What is Sequestration?

Sequestration is Bankruptcy but in Scotland.

If your finances have become too overwhelming to handle and creditor payments can no longer be met, an alternative step is sequestration: a scheme of financial control administered by the Trustee. This involves selling off assets; however, it could provide you with debt relief if at least £10,000 is outstanding towards creditors. A fee of £150 must firstly be paid directly to AIB before proceedings commence – they are the responsible authority for personal bankruptcies in Scotland!

Sequestration could be right if:

Advantages of Sequestration

Disadvantages of Sequestration

Minimal Asset Process (MAP)

If you’re struggling with unmanageable levels of debt, MAP may be the answer. This scheme gives those with low incomes and minimal assets a helping hand by writing off unaffordable debts – an incredible opportunity to break free from financial woes.

MAP may be an option if:

Advantages of MAP

Disadvantages of MAP

Debt Moratorium

Struggling with debt and creditor pressure? In Scotland, the Debt Moratorium scheme is your helping hand. Initially lasting just 6 weeks, this lifeline has now been extended to 6 months due to the Covid-19 pandemic – giving you extra time (and breathing space!) in which to get back on top of your finances. Here’s hoping it remains a permanent change!

How can I apply?

Are you a Scottish resident facing financial hardship? A Debt Moratorium is available to help protect you from creditors in the short term. It can buy time for professional debt advisors to determine which solutions best suit your current situation, such as Trust Deeds or a Debt Arrangement Scheme. Don’t hesitate – seek advice today and get on track with managing your finances!

We can help you, today.

We all know how difficult it can be to manage our finances when we’re juggling debt and an ever-changing financial situation. That’s why we are here for you today offering expert advice that will put your mind at ease! We’ll work with what matters most, getting out from under the load of persistent debts so they don’t continue weighing down on every aspect of life.

Advice Debt Top Tips

Do I really need to buy this?
Avoiding debt can be a challenge in our modern world, where it's easy to get overwhelmed by all the temptations of spending. To stay on track with your finances, take some extra time before big purchases and ask yourself if you truly need that item.
Make budgeting a good habit
Mapping out and keeping track of your spending is essential for financial stability and success. Developing a budget can help you save money, recognize potential overspending habits before they start, as well as protect against unexpected expenses. Mastering the practice of creating an effective budget plan will go long way in helping to improve your overall credit rating.
Knowing your credit score
An excellent credit score is essential for any individual looking to access financial assistance. Without this metric, lenders may deny borrowers mortgages, car loans and other financing options; even something as simple as a phone contract could come at an immense price with the wrong rating. Therefore, it's important that you understand how your credit score can impact your life in various ways - from getting approved for major purchases to making sure you are paying reasonable costs on everyday transactions.
Borrow or save?
Deciding whether to save or borrow can be a difficult choice that carries lasting consequences. Saving may mean having less cash on hand in the present, but potentially avoids financial trouble down the road. Conversely, borrowing provides quick access to funds now; however if payments are not made in full and on time it could create prolonged problems with debt repayment. Ultimately, saving is often considered the safer option for making major purchases.
Have I checked the interest rates?
Before taking the plunge and borrowing money, take a look at that all-important APR. Keep in mind interest rates can vary dramatically - so make sure you research what sort of additional cost is involved with taking out your loan to ensure it fits within your budget!
Switching your credit card
Take advantage of low-interest credit cards to save yourself some money! Doing the research, you may even find a card with 0% APR - however this won't last forever. Make sure that if you switch providers and get one at zero percent interest, make it your priority to pay off debt during that period or else once it ends, interest rates will be added in full force.
Saving for a rainy day
Don't let debt be a factor in your future plans. A smart money move is to start putting away just a little bit each week - every penny counts! For example, squirreling £5 per week adds up over time; by the end of one year you'll have saved an impressive total of £260 (and if placed into savings that could grow even more!).
Don’t bury your head in the sand
Don't let your dilemma fester. If you find yourself in trouble, seek out professional advice to get back on the road to financial freedom. Advice debt services are well-equipped with experts who specialise in helping people resolve issues quickly and discreetly – so don’t hesitate to reach out for guidance!

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We know that debt is daunting, but after speaking with us, we can put together a personal action plan to put your mind at ease.

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Our team of experts help thousands of families every year across the UK get their finances back on track.

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*To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.

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