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Debt Help Scotland

Carrington Dean have helped over 20,000 people with their debt over the years.

There are many reasons you may have found yourself struggling to deal with a debt problem. The loss of a job, unexpected motor expenses, an unforeseen accident at home, or any other emergency situation that could easily push you over the edge of your budget — and it doesn’t always have to be bad news that puts a strain on your financial circumstances, it could be the addition of new member to your family or a holiday trip that went over-budget — there really are countless ways to end up with a debt problem. Thankfully there are also a variety of ways to get out of one too.

Some debt solutions are more suitable to particular types of arrears and loan amounts than others. To decide which is the best option for you and your debt situation then your personal circumstances need to be handled by someone with the correct level of experience and knowledge into how each resolution is formulated in order to pick out the most affordable, stress-free, and appropriate resolution for you.

Do I have to pay for debt advice?

Debt advice should always be free. Once you’ve had the full range of options explained and have decided the best manner to resolve your situation any costs that are to be incurred entering into your chosen plan will be outlined by your service provider and too how they will be accounted for; whether by a selection of payments or a fee payable in addition to the cost of the debt.

When should I start to consider getting help?

The best time to deal with any debt problem is as soon as you think it may cause a strain on your financial situation. The options to resolve your debt in its infancy are often simpler than waiting until they become out of hand and escalate into a much bigger problem.

How will getting help affect me?

There are many positives associated with entering into a managed scheme or legal contract to resolve your debt issues. You will be handing over all of the stressful mediation and organisation to a qualified and trained professional who will handle all of those problem conversations and discussions for you. You will also only be expected to make payments that are within your means and suitable to your budget, and in some instances your debt may be written off completely.

It will affect your credit score

Unfortunately, most debt repayment or insolvency schemes will affect your credit rating and credit score. This will mean getting credit in future will be much harder and if credit is obtainable it will be given at higher rates of interest and with increased charges.

Key solutions available in Scotland

There are many ways to alleviate and resolve a debt crisis. The following three are the main options available in Scotland appropriate for those who have found themselves in financial difficulty.

Trust Deeds

A Scottish Trust Deed is a four-year period (or longer in certain circumstances) where a licenced Insolvency Practitioner will intermediate as a Trustee for you, dealing with your creditors within a legally binding arrangement in order to pay off your debts at a rate and term that is more manageable to you than your current unaffordable repayment options.

Who is it for?

  • Residents of Scotland
  • People with debts of more than £5,000

How will it help?

  • It will combine all of your debts into one manageable monthly payment
  • You will only have to deal with your Trustee instead of all of your existing debtors
  • It offers protection to you against your debtors commencing court proceedings to recover their loans
  • It offers protection against repossession of your home and car

Debt Arrangement Scheme (DAS)

A Debt Arrangement Scheme is a debt management option created by the government as an alternative to Trust Deeds.

This method offers the solution of freezing interest payments, fees, penalties and charges on your debt allowing you to repay the debt amount over a chosen term that is more suitable to your current financial situation.

Who is it for?

  • Residents of Scotland
  • People with unsecured debts including:
    • Bank/building society loans
    • Overdrafts
    • Credit or store cards
    • Shopping catalogues
    • Council tax and utility bill arrears
    • Mortgage arrears in certain circumstances

How will it help?

As with a Trust Deed a Debt Arrangement Scheme will:

  • Protect your home and car as long as you continue to make your payments
  • Protect you from court proceedings from your debtors
  • It will creative breathing space from your current level of debt to regain control of your financial situation

Sequestration

Sequestration is the equivalent of Bankruptcy in England.

This process applies for a formal insolvency through a Trustee who will take control of your estate and deal with your creditors on your behalf. This is often the chosen route for a debtor who doesn’t have the correct disposable income to pay a Trust Deed.

The Trustee will decide which of your assets, including property, can be utilised to raise funds for your creditors. A term of 4 years is recognised to make repayments when funds are available but the Accountant in Bankruptcy may grant a discharge at the end of 1 year if deemed appropriate. You must still co-operate with your Trustee for the term of the sequestration period.

The application for sequestration will cost £200 and is to be submitted to the Accountant of Bankruptcy.

Who is it for?

  • Debtors owing £1,500 or more
  • Residents of Scotland

How will it help?

  • Creditors can no longer pursue court action to recover your debts
  • You will no longer have to deal with your creditors personally
  • Your debt may be discharged at the end of one year
  • Any welfare benefits will not be taken into consideration as income when calculating your monthly contribution

 

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Carrington Dean has helped more than 10,000 people to resolve their debt problems in Scotland. You could be next!

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