The main debt solutions available to residents of Scotland are as follows;
Protected Trust Deed.
A Protected Trust Deed is an agreement between you and the people you owe money to (also known as your creditors). It works by you agreeing to REPAY A PERCENTAGE of your debt in one affordable monthly payment over a given time (usually around four years). Once you’ve made your final payment, the remainder of your debt is written off.
You’ll still have enough money left over to live your life after making reduced debt repayments. There will be no more interest added, no more threats of legal action, and no more hassle from your creditors. A Protected Trust Deed will help you avoid bankruptcy, and all the unsettling consequences that come with it.
Sequestration.
This is also known as bankruptcy.
If you can’t afford to pay debts of over £3000, you may be eligible to apply …show more content…
Some debt solutions have strict eligibility criteria, while others are open to anyone.
How soon do you want to be debt-free?
Some options will write off your debt after a certain time, while others will continue until you 've paid every penny back. It can be tempting to choose an option that will write off your debt quickly, but these can often have a greater impact on your day-to-day life. So you may be debt-free quicker, but you could find it more difficult to get a new home or job, even after you become debt-free.
Are your debt problems permanent or temporary?
If you 're struggling with debts now, but know you 're about to get a new job or receive an inheritance, a formal debt solution might be too drastic for you. Most formal debt solutions are permanent, so you can 't stop them if you come into money. You might find it 's better to choose an informal debt solution that will help make your life more manageable in the short term, until things improve.
Do you want to deal with your creditors
Protected Trust Deed.
A Protected Trust Deed is an agreement between you and the people you owe money to (also known as your creditors). It works by you agreeing to REPAY A PERCENTAGE of your debt in one affordable monthly payment over a given time (usually around four years). Once you’ve made your final payment, the remainder of your debt is written off.
You’ll still have enough money left over to live your life after making reduced debt repayments. There will be no more interest added, no more threats of legal action, and no more hassle from your creditors. A Protected Trust Deed will help you avoid bankruptcy, and all the unsettling consequences that come with it.
Sequestration.
This is also known as bankruptcy.
If you can’t afford to pay debts of over £3000, you may be eligible to apply …show more content…
Some debt solutions have strict eligibility criteria, while others are open to anyone.
How soon do you want to be debt-free?
Some options will write off your debt after a certain time, while others will continue until you 've paid every penny back. It can be tempting to choose an option that will write off your debt quickly, but these can often have a greater impact on your day-to-day life. So you may be debt-free quicker, but you could find it more difficult to get a new home or job, even after you become debt-free.
Are your debt problems permanent or temporary?
If you 're struggling with debts now, but know you 're about to get a new job or receive an inheritance, a formal debt solution might be too drastic for you. Most formal debt solutions are permanent, so you can 't stop them if you come into money. You might find it 's better to choose an informal debt solution that will help make your life more manageable in the short term, until things improve.
Do you want to deal with your creditors