11/11/2019

Personal insolvencies on the rise across Scotland

11/11/2019

Personal insolvencies on the rise across Scotland

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More Scots are turning to personal insolvency in a bid to regain control of their finances, new figures have revealed.

Official statistics published by the Accountant in Bankruptcy (AiB) – reporting personal and company insolvencies for Scotland for the second quarter of 2019 – revealed the number of personal insolvencies were up more than 12% on the previous year.

Results show there were 3,466 bankruptcies and protected Trust Deeds in Scotland in 2019-20 Q2, more than the 3,077 personal insolvencies in the same quarter of the previous financial year.

A total of 1,178 bankruptcies were awarded during this quarter – a 1.6% increase on the same quarter in 2018-19, while protected Trust Deeds increased by 19.4% to 2,288 over the same period.

The number of debt payment programmes (DPPs) approved under the Debt Arrangement Scheme (DAS) also saw an increase with 751 DPPs approved compared with 636 in the same quarter of last year.

Scots repaid £9 million through DAS during this quarter, however, this was a decrease of 2.0% compare with the £9.2 million repaid in the same quarter of 2018-19.

How can I get help with debt?

There’s no denying the complex relationship with money – particularly when it comes to dealing with debt.

As highlighted by the latest AiB figures, debt is a part of everyday 21st century life for thousands of Scots with each person having their very own unique take on their financial situation.

For some a £50 credit card bill could cause major anxiety while those living with thousands of pounds worth of debt could sleep soundly at night safe in the knowledge their debts are being managed.

Regardless of your financial feelings, when it comes to dealing with debt a proactive approach is key. It’s important to keep on top of payments to make sure your debt doesn’t spiral out of control.

Money management tips

Keeping a hold of your purse strings can be easier said than done at times, however, there are simple steps you can take to help make financial planning and management just that little bit easier.

1. Set a budget:

It may seem obvious but setting a budget is one of the easiest ways to keep on top of your finances. A budget allows you to track your finances to ensure you have enough money to cover monthly expenses. By taking action in advance it allows you to put a plan in place should you discover you will struggle for money at the end of the month and could potentially avoid further problems.

2. Prioritise your debts:

This might seem counter productive but actually by prioritising your debts you are more likely to actually make headway in repaying what you owe. Clearing credit cards is often described as the best course of action as they tend to have higher interest charges. However, it’s important to always make the minimum payment on all bills even when doing this to avoid missed payment fees.

3. Make the minimum payment:

As mentioned above, making the minimum payment is vital when it comes to dealing with your debt. It isn’t going to make any real impact on how much you owe but it stops your debt from growing.

4. Avoid late payments:

Falling behind with payments may not always seem like a big deal, however, it have serious repercussions and make it harder to repay what you owe as you’ll have to cover the cost of late payment fees on top of what you owe and interest. Set up a calendar reminder to make sure you never forget what bill is due and when.

What debt help is available?

Managing debt might seem like a daunting prospect, however, there are a number of different debt solutions available to people in Scotland that can provide breathing space to those struggling.

The most important thing is to be open and honest about your circumstances and not be afraid to admit that you need a little assistance.

No one wants to admit that they’re struggling with cash but if you find yourself unable to pay your debt or bills every month it’s imperative to reach out for help.

Debt solutions such as Trust Deeds and Debt Arrangement Schemes are available to people living in Scotland having difficulty with their debts.

To find out more about what debt help is available or for advice about how to manage your debts, speak to Carrington Dean.

Call 0808 2085 195 for free and confidential advice to find a solution for your debts that’s suited to you, regardless of your situation.

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

Check if you Qualify

 

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