HELP WITH DEBT

Debt Help Scotland

HELP WITH DEBT

Debt Help Scotland

Overview

At Carrington Dean, we understand that talking about debt is difficult. Throughout the years, we’ve helped over 24,000 people start the conversation and break down the stigma that surrounds debt.

Everyone finds themselves in debt for different reasons. From losing your job or experiencing an unforeseen accident to overspending on a holiday or expanding your family, there are many things that can easily tip you over the edge of your budget.

It’s easy to feel like you have fallen down a dark hole when it comes to debt, but thankfully, there are many ways to get yourself out of that hole.

Although debt solutions all seem alike, some are more suitable to certain types of debts compared to others. We believe that in order to decide what’s right for you, it’s always best to gather as much information possible.

That’s why we’re not afraid to do a little money talk in a bid to share our knowledge and experience of how each debt solution available could make a lifechanging difference.

Do I have to pay for debt advice?

While some organisations charge for help, paying for advice is not something we advocate, so all our debt advice is completely free.

Once you have been given the full range of options available to you and made your decision, any costs that are to be incurred during your chosen solution and how they will be accounted for. This will normally be through a selection of payment or an additional fee.

When should I start to consider getting help?

It’s always best to get help with your debts as soon as you realise they’re becoming a problem. Understandably, this isn’t easy, and most people don’t notice until it has already become a problem.

It’s very easy for debts to escalate into a much bigger problem, so it’s better to resolve them in their infancy before they get out of hand.

It will affect your credit score

Unfortunately, most debt solutions will have an impact on your credit rating and credit score. Obtaining future credit will be much harder and if given it will be done so with higher interest rates and increased charges. However, it’s important to note that if you’re already failing to make payments to debts you owe your credit score will already be negatively affected.

Key solutions available in Scotland

There are many ways to lighten the burden that is your debt, and it’s important to remember that you’re not alone. The solutions below are the three main options available in Scotland for those who have fallen into financial difficulty.

Trust Deeds

Trust Deed is a legally binding arrangement between an individual and their creditors that generally lasts for a four-year period. A licensed insolvency practitioner will act as a Trustee and deal with the people you are in debt with on your behalf in order to allow you to pay off your debts at a rate and term that is manageable to you.

Who is it for?

This solution is only available to Scottish residents who have an overall debt level of more than £5,000.

How will it help?

A Trust Deed will combine all of your unsecured debt repayments into just the one manageable monthly payment and you will no longer have to deal with the companies you owe money to as your Trustee will do it for you.

It also offers you protection against any legal action from your debtors to recover the money they’re owed and prevents them from being able to repossess your home or car.

Debt Arrangement Scheme (DAS)

Debt Arrangement Schemes are a debt solution created by the government as an alternative to Trust Deeds.

This solution allows you to pay back your debts over a period of time that’s suitable to your circumstances. Interest, fees and charges are all frozen and your debt repayments are again combined into the one manageable monthly payment.

Who is it for?

This solution is available to Scottish residents who are struggling to repay their unsecured debts. There is no minimum debt level required to apply for a DAS, but you will have to repay your debts in full under this solution.

How will it help?

Similar to a Trust Deed, a DAS will give you protection against any legal action from the companies you owe money to and you will be able to keep your car and home.

This solution ultimately gives you breathing space within your circumstances to be able to regain control of your finances and repay your debts in a way that’s suitable to your situation.

Sequestration

Sequestration is the Scottish equivalent of Bankruptcy. This is commonly a route taken by those who do not have enough disposable income to qualify for other debt solutions.

A Trustee will take control of your estate and deal with your debtors on your behalf, deciding which of your assets can be used to generate funds to pay back your debts. Where funds are available, a four year term is given to make repayments, however, the Trustee may grant you a discharge after a one-year period if deemed appropriate.

It will cost you a £200 application fee and you must co-operate with your Trustee for the duration of the Sequestration period.

Who is it for?

Sequestration is available to Scottish residents who have an overall debt level of £1,500 or more and are struggling to make repayments due to low disposable income.

How will it help?

If you enter into a Sequestration, your debtors can no longer take any legal action to recover your debts and you will no longer have to personally deal with them – the Trustee will do this for you.

Once you have been discharged, you will no longer be in any debt.

You could write off up to 75% of unsecured debt with our debt assistant.

We've helped so many others just like you.