Scottish debt problems aren’t unique themselves however the solutions to deal with the debt can be, depending on the level of debt and other factors.
There are some regions in Scotland where debt problems are more prominent than others. At Debt Support Trust, our charity money advisors are here to give you all of your options regarding your debts so you can make an informed decision. You can seek help with debt on 0800 085 0226.
Scottish Debt Problems
There are routes to deal with Scottish debt solutions. Some of the statistics which surround debt problems in Scotland are:
- A survey by the British Bankers Association found one Glasgow region had the second highest debt level in the UK
- A report by Save The Children found 1 in 5 children across Scotland are growing up in poverty
- Debt Support Trust statistics found the average person in Scotland has £20,000 debt
Scottish Debt Solutions
However, there are solutions to debt problems in Scotland and these are only available to people who have lived in Scotland for 6 months prior to seeking debt help. The debt solutions we explore are specific to Scotland only as the rest of the UK has different debt plans.
Any debt advice you receive should be tailored to your situation and specific for your needs.While you may be able to enter other debt solutions, like a debt management plan, the debt arrangement scheme in Scotland would be a more appropriate choice.
Protected Trust Deed
If someone is employed and can afford to make a monthly contribution to their debt, however can’t pay it in full they should consider a protected trust deed.
The protected trust deed is able to resolve Scottish debt problems by allowing people to write off up to 90% of their debt and freeze interest & charges. The trust deed has both pros and cons which you should consider before entering the solution.
Debt Arrangement Scheme
When someone is considering a debt management plan they are often better entering a debt arrangement scheme because of its added benefits.
People will still repay the full debt however it is a formal solution which means interest and charges must be frozen once it begins and cannot be changed. The DAS is suitable for some people, especially those with a considerable amount of equity in their property, or other asset.
Depending on your financial and personal situation you may decide to enter sequestration.
Scottish bankruptcy is different to the rest of the UK because there are different routes to entering the solution and the fees also vary.
Some people will still have to make monthly re-payments to their debt if the trustee in sequestration feels there is sufficient disposable income.