Scotland
If you’re struggling to keep up with repayments, you’re not alone. Every year, thousands of people across Scotland find themselves in the same position. The most important thing to remember is that there are ways to deal with problem debt, and the sooner you seek advice, the more options you’re like to have.
Take a moment before you panic
Realising you can’t pay your debts can feel overwhelming. You might be worried about calls from creditors, losing your home, or how your financial situation could affect your family.
These concerns are completely understandable. However, taking action early can help reduce stress and prevent the situation becoming more difficult.
Many people delay asking for help because they feel embarrassed or hope things will improve on their own. In reality, seeking advice sooner rather than later often leads to better outcomes.
Understand your financial situation
Before deciding what to do next, it’s helpful to build a clear picture of your finances.
Ask yourself:
- How much do I owe?
- Who do I owe money to?
- Am I behind on any payments?
- Which bills are the highest priority?
- How much money do I have each month after paying essential household expenses?
Don’t worry if you don’t have all of the answers. An experienced adviser can help work through your finances and identify the information that’s needed.
Don’t ignore the problem
Ignoring letters, email or phone calls from creditors doesn’t make debt disappear.
In our experience, creditors are much more willing to work with people who acknowledge the situation and seek advice.
If you continue to miss payments without taking action, additional charges, interest or legal action may following, depending upon the the type of debt.
Prioritise essential household bills
If money is tight, some payments should generally take priority over others.
These include:
- Mortgage or rent
- Council Tax
- Gas and electricity
- Child maintenance
- Court fine
Missing payments on essential household bills can sometimes have more serious consequences than falling behind on unsecured borrowing such as credit cards or personal loans
Avoid borrowing more to solve existing debt
When money is short, it can be tempting to:
- Use another credit card
- Take out a payday loan
- Borrow from family or friends
- Use an overdraft to cover repayments
Whilst these options may provide short-term relief, they can sometimes increase your overall debt and make the situation harder to resolve.
Learn about debt solutions which may be available
When learning about debt solutions, it’s essential you seek the advice of a qualified and regulated debt adviser. Avoid marketing companies which may be incentivised to lean towards one debt solution over another.
There is no single solution that’s right for everyone. The best option for you depends upon your personal circumstances, including:
- How much you owe
- Your income
- Your household spending
- Whether you own your home
- Your employment
- Your assets (things that you own, such as vehicles, investments etc)
- What you’re hoping to achieve
Depending upon your circumstances, solutions in Scotland may include:
- Debt Arrangement Scheme (DAS)
- Protected Trust Deeds
- Sequestration (Scottish bankruptcy)
- Informal repayment arrangements
A qualified adviser can explain how each option works and whether it may be suitable for you
You don’t need to know which solution you need
Many people worry that they need to understand debt law before asking for help.
You don’t.
Our role is to understand your circumstances first and explain the options available in plan English.
We’ll answer your questions honestly, explain the advantages and disadvantages of each solution and help you decide what feels right for you.
Take the first step today
The hardest part is often asking for help.
Our online enquiry form does not take long to complete.
You’ll be asked about:
- Approximately how much debt you have (don’t worry if you don’t know the exact figure, we can help you find out)
- What’s worrying you most
- What you’d like to achieve
- Some basic information about your circumstances
- Your preferred contact details
Once we’ve received your information, one of our experienced advisers will review it and get in touch to discuss your options in confidence.
Ready to find out what help may be available?
Complete an enquiry form today and take the first steps towards becoming debt free.
Frequently asked questions
What happens if I stop paying my debts?
The consequences depend upon the type of debt you have. You may receive reminder letters, default notices, additional interest or charges, and in some cases creditors may take legal action. If the debt is secured against an asset, such as a property or a vehicle, the lender could take steps to repossess the asset. Seeking advice early can help you understand your options before matters escalate.
Can debt be written off in Scotland?
In some circumstances, certain debt solutions can result in some or all qualifying unsecured debts being written off. Whether this is possible depends entirely upon your financial circumstances and the solution that’s appropriate for you.
Will asking for debt advice affect my credit rating?
No. Simply seeking debt advice does not affect your credit file. However, formal debt solutions and missed payments will have an impact. Our advisers will explain any implications before you make a decision.
Is debt advice confidential?
Yes. Everything you tell us is treated confidentially. We’ll listen to your circumstances, answer your questions and explain your options without pressure or obligation.
Need help with your debts?
If you’re worried about your finances, don’t wait until the situation becomes more difficult.
Complete our free online enquiry form and one of our experienced advisers will help you understand your options.
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