Monday, November 15, 2010 9:17:00 AM
by Roy Forsyth
People from all walks of life can find themselves having financial worries and end up in some sort of debt. As it’s seen as taboo to discuss money worries people can often feel isolated and alone. Debt Scotland pride themselves in offering a friendly, confidential service that has benefited thousands of people all over Scotland.
In 2009 the government posted results of a survey of 1,262 Trust Deeds registered between 1st April 2008 and 30th September 2008, which revealed gender to monthly income and assets.
55% of the people surveyed were female and 45% male, with an average debt of around £32,650.
The highest debt for a single person was £456,361 while the lowest was £3,542.
There was a massive variation in monthly income ranging from £200 - £4,600 although the majority of people ranged from £800 - £1,400.
From the survey it’s clear that anyone can be affected by debt. There were over 9000 Trust Deeds signed in Scotland last year and with the currently economic climate that number is set to rise within 2011. Debt Scotland know that a change of circumstances such as losing your job or a relationship breaking up can enter you into a world of debt. If you are affected by debt in anyway then please give us a call or fill in our online to see if you qualify for debt help.
Wednesday, December 22, 2010 1:01:00 PM
by Danny Brown
Never has debt help in Scotland been needed more. The Scottish Citizen’s Advice Bureau has seen the number of enquiries relating to debt double during the last year. Debt issues now account for nearly 30% of its workload.
The market research firm CACI recently reported that Anderston and Calston in Glasgow top a ‘league table of debt’, with one in five residents having personal debt exceeding £15,000. Drops in income, redundancy threats, divorce, spiralling personal debt, lack of credit and a lack of affordable housing have combined to cause tremendous hardship, but the residents of Anderston and Calston are not the only ones having problems and needing debt help in Scotland. Scottish residents far and wide are feeling the pressure too.
Thursday, January 13, 2011 10:57:00 AM
by Danny Brown
The UK national debt is the total amount of money the British government owes to the private sector and other purchasers of UK gilts.
From figures published September 2010, UK public sector net debt was £952.8 billion. (or 64.6% of National GDP) – Source: Office National Statistics [1] (page updated October 25, 2010)
Excluding Financial sector intervention, public sector debt is £842.9 billion or (57.2% per cent of GDP)
The PBR (annual government borrowing) forecast for 2010/11 is for net borrowing of £149 billion or 12.6% of GDP.
Saturday, February 12, 2011 8:08:00 AM
by Danny Brown
A new report suggests that the amount of savings held by Scottish residents to see them through tough times is ‘worryingly low’, Scotland on Sunday reports.
The study, commissioned by Aegon UK and written by savings expert Stewart Ritchie, found that Scots in all income groups now have practically no ‘rainy day funds’ to fall back on.
Mr. Ritchie said: “Only a minority of Scottish households seem likely to be holding adequate levels of ‘rainy day money’, even in comparatively high-income households. This does not bode well for those whose livelihoods are at risk in the current economic recession.
“If they end up losing their jobs, they are going to have very little to fall back on and will face a great deal of hardship.”
Both consumer groups and politicians warned that ‘the danger now was of many more Scots falling into a spiral of debt unless current savings levels could be boosted’.
The former finance minister and economy spokesman for Labour in the Scottish Parliament, Andy Kerr, stressed that ‘people on modest incomes who don’t save were at real risk of falling into debt’.
Thursday, February 17, 2011 6:33:00 PM
by Roy Forsyth
There are a few different scenarios but the answer is generally YES.
If you have your car as part of a Hire Purchase Agreement then any finance is secured against the car. This means that you will need to continue to make payments for the car and it will be separate from the Trust Deed.
If the car was purchased as part of a personal loan then this will be included as part of your Trust Deed, meaning that you would keep the car.
The rationale behind keeping your car is that it’s an essential tool required to travel to and from work, used to go shopping, pick up children from school etc. The only case that a car may be used is if it is worth a considerable amount of money and may be used to help pay off your debts.
Saturday, February 19, 2011 2:46:00 PM
by Roy Forsyth
In my opinion, a Trust Deed is the best option to deal with debts that you are struggling to pay. A Scottish Trust Deed will only cover unsecured debts such as unsecured loans, council tax, overdrafts, credit cards or store cards. Loans that are secured against your home and hire purchase agreements, such as with a car, are not covered with a Trust Deed.
Another item that is not included is student loans. You will still continue to pay this after you sign a Trust Deed.
Council tax is an item that is included in a Trust Deed. If you are having issues with debt you will know that the not paying council tax enables your local authority to arrest your wages or bankrupt you. If you enter a Trust Deed early enough then this will prevent the council from taking any action against you.
Utility bills can be included in a Trust Deed, however because of this you may need to get a payment card installed. Although changing provider before entering into a Trust Deed may stop this from happening.
Monday, February 21, 2011 6:11:00 PM
by Danny Brown
Most people have no knowledge of Trust Deeds and when they have large debts they immediately assume that they will need to opt for bankruptcy (sequestration in Scotland). For Debt Scotland this isn’t the case and sequestration is the last option that we would opt for. A Trust Deed is a far better alternative to sequestration as it doesn’t come with the pitfalls such as losing your home, losing any life assurance policies and the unfortunate stigma attached to bankruptcy.
Trust Deed is available only in Scotland and is an agreement that allows a debtor (you) to repay a percentage of their debt to creditors (people you own money to). This is calculated from how much you are realistically able to afford taking into account your living costs. Before you can enter a Trust Deed you must speak to a debt advisor to see if you qualify for a Trust Deed and to ensure that this is the correct debt solution for you. A Trust Deed tends to last 36 months and after that period will be completely debt free and ready to get your life back on track.
Take the first step to being debt free and contact our team of expert advisors by completing our online form to see if you qualify.
Tuesday, March 01, 2011 1:20:00 PM
by Roy Forsyth
A Trust Deed agreement is effectively a commitment to repay the debts that you owe, at a reduced rate, over a defined period of time. This period tends to be 36 months.
A Trust Deed agreement means that you agree to the following:
Give your full co-operation to the trustee
Ensure that the monthly payment is always on time and without fail
Not receive any further credit
Inform the trustee of any cash windfalls of over £200
The Trust Deed arrangement will freeze all interest and charges.
If you miss a payment to your Trust Deed then it could be terminated. If this happens then any protection you had from your creditors will be removed and you will need to find any alternative professional debt solutions such as sequestration.
Thursday, March 10, 2011 5:33:00 PM
by Roy Forsyth
There are numerous companies offering debt solutions for people in Scotland. If you haven’t already selected the company that you wish to offer you debt advice then here is some advice that you should follow.
Debt Scotland offers a variety of debt solutions and won’t force you down a particular path. If a Trust Deed isn’t suitable then we are happy to offer alternatives, such as Debt Management Plans or Sequestration.
Here are a few tell tale signs that you may be dealing with the wrong debt experts:
1. Aggressive sales calls. Don’t feel pressured by aggressive salesmen, pressuring you into signing an agreement. You are under no obligation and it should be on your terms.
2. Ensure that any debt advice is FREE! Don’t allow your debt expert to charge a fee for advice. Debt Scotland and many other companies offer free advice.
3. You can insist on a face-to-face meeting with your debt advisor. Debt Scotland only deal with the most reputable companies who are all well established in their particular industry. Don’t worry if you work during normal business hours, meetings at evenings or weekends will be fine.
4. Is your debt expert actually a qualified debt advisor? For example, any company that Debt Scotland recommends for a Trust Deed will be regulated by the Financial Services Authority and be tightly regulated.
Debt Scotland has a strong reputation as a provider of Trust Deed and Debt Management Plans. Please complete our online form or give us a call if you require any free debt advice.
Thursday, March 17, 2011 7:47:00 PM
by Danny Brown
The only geographical location that matters for a Trust Deed is that you have been a resident of Scotland for the last 6 months. A Trust Deed in the same in Glasgow, as it is in Edinburgh...Aberdeen...Stirling...Dundee...Perth or anywhere else in our beautiful country!
Debt Scotland are a Scottish debt solution company based in SCOTLAND! It might be hard for you to believe that some, so called, SCOTTISH Debt Solutions companies are actually based in England and will probably look to charge you a fee for travel expenses.
Tuesday, March 22, 2011 12:11:00 PM
by Danny Brown
The FSA reports potential for future borrower problems when interest rates return to normal.
Historically low interest rates are encouraging borrowing of up to 3.5 times applicants earnings after they find the deposit demanded.
Worries are expressed that the eventual bounce back of interest rates to normal levels, together with potentially increasing redundancies and house price stagnation could bring future grief to those again potentially over borrowing on their earnings.
Interest rates are at a historically low at 0.5%, and have remained so for two years, but accelerating inflation will eventually make this unsustainable. Those taking on tracker mortgages beware.
Tuesday, April 12, 2011 10:13:00 AM
by Roy Forsyth
Dealing with debt collectors can be very stressful and upsetting for most people. Especially for someone with severe levels of debt who may have a handful of debt collection companies pressing them for full payment of debts. The best advice I can give is to only deal with debt collectors in writing!! This removes the menacing tactics that they use. If you need to speak to them via telephone then these are my top tips for you:
You must stay calm at all times! Debt Collectors are trained to focus on weaknesses and will be happy to threaten you with ‘legal action’. If they start to threaten you then please ask to receive any threats in writing.
Try not to be argumentative on the phone! I understand that it’s difficult when being faced with someone who is not understanding of your current predicament and more interested in the funds that you can pay them immediately. Remember that these people are earning a commission.
Don’t over commit yourself, only pay back what you can afford!
Don’t disclose any personal information, such as telephone numbers or your place of work. Some debt collection companies can be unscrupulous and contact you at work or on a private telephone number.
If you require any further debt advice please complete our online form and a skilled advisor will call you back.
Friday, May 06, 2011 11:23:00 AM
by Roy Forsyth
Unless you’ve been researching different debt solution options it’s unlikely that you will be familiar with a Trust Deed or an IVA. Even after looking into different options, people tend to be confused with what options are available to them.
So what are the differences between a Trust Deed and an IVA?
- You must be a resident of Scotland to be eligible for a Trust Deed and a resident of England or Wales for an IVA. In both cases you must have lived in the country for at least 6 months.
- The minimum debt level for a Trust Deed is £10,000 while an IVA is £15,000. Remember, these need to be unsecured debt such as credit cards, loans, store cards and catalogues.
- A Trust Deed usually lasts 36 months and an IVA for 60 months. Being a resident of Scotland allows you to be debt free in 3 years instead of 5 if living in England or Wales. On rare occasions a Trust Deed can be longer than 3 years but this will be arranged by your debt professional.
- After signing Trust Deed you need to apply separately for it to achieve ‘Protected’ status. This is when your trustee applies to have your assets transferred to their control. When you sign an IVA all your assets are transferred to your trustee and automatically protected.
Other than these few differences a Trust Deed and an IVA are very similar.
- You need to owe money to more than 2 creditors
- The will need to make monthly contribution of at least £150 per month.
- Only unsecured debts can be included in both a Trust Deed and an IVA.
- Charges and interest are frozen
- At the end of your agreed term all remaining debts will be written off.
- Some professions won’t allow you to continue employment if you enter bankruptcy, a Trust Deed and IVA offer a realistic alternative.
- You can be a company director and still have a Trust Deed or IVA.
- Any windfalls of £200 or more must be declared if you enter into a Trust Deed or IVA.
Trust Deeds and IVAs help thousands of people get out of debt each year. These aren’t special cases, they are people like you who are struggling to pay their creditors and see no light at the end of the tunnel. Entering into a Trust Deed or IVA shouldn’t be taken lightly and you should spend time researching the options available to you. If you require assistance with this then please complete our online form or phone the free phone number. Please complete as much detail as possible on our online form as this will enable us to have a debt solution ready for you when we call you back. We endeavour to call you back within 1 hour and operate between 9am and 9pm. You can rely on Debt Scotland finding the right debt solution for you.
Tuesday, May 10, 2011 8:21:00 AM
by Roy Forsyth
A common question that we get asked is whether or not you can sign a Trust Deed if you are self employed.
You will be glad to know that the simple answer is yes. As long as you are employed, have debt of over £10,000 and you are a Scottish resident then you may be eligible.
One thing that you may need to do is bring documentation that proves your income for the last 6 months. This is so that we have an accurate idea of your income for that period. As long as this proves that you can made regular contributions to your trust deed then you will be eligible.
If you have any questions then please don’t hesitate to complete our online form or call us on the free phone number provided. Trust Deed Scotland have years of experience in helping people like you get out of debt.
Thursday, May 19, 2011 9:52:00 AM
by Danny Brown
There is a certain criteria that you must meet if you want to be successful in your application for a Trust Deed.
What is the criteria?
- You must be a resident of Scotland for more than 6 months.
- You must have debt of over £10,000
- You must be employed or self employed
What are the costs involved in setting up a Trust Deed?
Trust Deed Scotland will not charge for any setup fees and we also offer free advice. If a company asks you to pay a setup fee then it would be advised to avoid them and look for an alternative company to proceed with.
I’m interested in a Trust Deed, how long do I need to wait?
Some Trust Deeds can take up to 6 week, others are much quicker as it tends to depend on personal circumstances. If you are interested then please contact us on our free telephone number or complete our online form.
Sunday, June 05, 2011 11:55:00 AM
by Danny Brown
A common question that most people ask when speaking to www.debtscotland.net is will they have to change bank accounts.
If you have debt with the bank or a subsidiary of the bank then you will be required to change bank accounts. At this point some people are hesitant of changing bank accounts which is usually down to the fact that they have banked with the same bank all their life and perhaps feel some level or loyalty to them.
As all debt has to be included into the Trust Deed then any overdrafts, loans, credit cards etc with that bank will be included. This will effectively mean that the bank will not receive their full balance back and as a result will eventually freeze and close your accounts. This is the main reason you are required to change bank accounts in order to set up a Trust Deed. If you don’t however have any debt with your bank or a subsidiary of them then you can continue to use your current bank account without any problems.
The general assumption that some people make is that because they are in financial difficulty then they will not be able to change bank accounts as the bank will carry out a check on their credit rating. The majority of people that www.debtscotland.net help set up a Trust Deed are required to change bank accounts and there are never any problems in doing so.
There is one bank in particular to avoid when changing bank accounts and due to the experience that www.debtscotland.net has, we are aware that it is their policy to freeze and close an individuals account if they are in a Trust Deed. (Please contact us further to discuss this). All other high street banks will provide you with a basic bank account to operate standing orders and direct debts.
Most high street banks will automatically transfer any standing orders and direct debits to your old account to the new account with the new bank. All you are then left to do is contact your employer and if you are in receipt of any benefits from the DWP or HMRC, provide them with your new bank details and your salary and any benefits will be paid into your new account. It’s as simple as that.
Call us today to discuss any concerns or questions you might have in relation to your bank accounts and one of the advisors at www.debtscotland.net will be happy to help.
Wednesday, June 08, 2011 2:21:00 PM
by Roy Forsyth
If you live in Glasgow and are struggling with debt then don’t worry, as you are not alone! A recent survey compiled by Trust Deed Scotland found that individuals in Glasgow are unaware that they are able to get free debt advice in Glasgow.
If you have been struggling with debt then you may want to look into a Trust Deed as a possible solution. A Trust Deed is for individuals that have over £10,000 of debts and allows you to write off a significant portion of your debt, sometimes up to 90%. With a Trust Deed you would make a monthly contribution towards your debt for a period that is usually 36 months.
If you are looking for debt advice in Glasgow then a Trust Deed would be a viable option for you. This isn’t the only option as you could look into a debt arrangement scheme, debt management plan, debt consolidation or sequestration. If you are interested then please complete our online form to see what debt solutions you quality for.
If you are interested in a Trust Deed then let us dismiss some popular misconceptions that you may have heard:
- A Trust Deed is not a loan.
- Trust Deeds are not credit checked.
- Trust Deeds are legislated by the government but they are not administered by them.
- You do not need to make any court appearance.
- Your credit rating will be adversely affected but can be rebuilt with some careful planning.
- You do not need to be in full time employment but do require a disposable income of £150 per month.
- There is no minimum or maximum age for a Trust Deed. We have pensioners that are on Trust Deeds!
- Setup fees for a Trust Deed are not mandatory, shop around for an IP that won’t charge you.
If you are interested in a Trust Deed then please complete our online form to see if you qualify for a Trust Deed with Trust Deed Scotland.
Saturday, June 18, 2011 12:00:00 AM
by Danny Brown
One of the main questions that we are asked at Debt Scotland is will my friends, family members or more importantly my employer find out if I sign a Trust Deed.
Debt is a very private thing and over the years we have discovered that very few people tend to openly discuss their debt problems and worries. We have found that debt can even be hidden from a partner, husband, wife etc. As a result of this, people don’t realise how common a problem it actually is.
The Trust Deed and even Sequestration (Bankruptcy) isn’t advertised in any local newspapers etc. The Trust Deed is advertised in a paper called the Edinburgh Gazette. This is a subscription only paper and cannot be obtained in any local newsagents or supermarkets.
There are two main reasons that the Trust Deed is advertised in this paper. The first is if someone forgets to tell us about a debt and paperwork isn’t sent to that creditor. This stops that creditor using the excuse that they didn’t receive any paperwork in relation to the person. The second and more important reason is the creditors have exactly five weeks from the date of the advert to either accept or reject the Trust Deed proposal. Within our other post, “How does a Trust Deed in Scotland actually work” explains this process in more detail.
It’s extremely unlikely that anyone out with the specific debt sector will find out about your Trust Deed. It is banks, accountants and some solicitor firms that subscribe to the Edinburgh Gazette newspaper.
In addition, your employer does not also have to find out about your Trust Deed. We do not write to your employer or inform them. The only people that will find out about your Trust Deed are your creditors. That’s it.
Contact us today in order to discuss any worries or questions you might have in relation to how private signing a Trust Deed in Scotland is.
Tuesday, June 21, 2011 3:37:00 PM
by Danny Brown
A Trust Deed is a voluntary arrangement between the individual and their creditors which is legally binding. A common question we are asked is can you do a joint Trust Deed if there are joint debts. You can’t do a joint Trust Deed i.e. for Mr & Mrs, it has to be a separate Trust Deed for each person. Each individual with debt whether it’s in their sole name or joint name would have to enter into their own Trust Deed in order to be protected from creditors.
The Trust Deed is normally based on you making a regular weekly or monthly contribution for a three, four or five year period. At the end of that period the remaining balance of your debts are effectively written off.
When you enter into a Trust Deed a full proposal has to be sent to each one of your creditors. The creditors have to be given an opportunity to either accept or reject the Trust Deed proposal and all of the creditors have a strict period of five weeks to either accept or reject the Trust Deed proposals. Providing that no more than one third of the total amount of creditors or a majority in number object to the Trust Deed then the Trust Deed becomes “protected” by the Accountant in Bankruptcy. This effectively means that the creditors cannot legally pursue you for the outstanding balance, add interest and charges, and as long as you maintain your Trust Deed payments, are guaranteed to be debt free at the end of the three, four or five year period. A point to note is creditors don’t have to accept it all they have to do is object to it. Nowadays however as long as the proposal is a fair and reasonable one then creditor will generally always accept the Trust Deed.
The Accountant in Bankruptcy is the Scottish Executive department that monitor Trust Deeds to ensure that they are administered correctly and in accordance with the rules. This gives you the reassurance that the Trust Deed is properly regulated and monitored in Scotland.
Contact us today in order to discuss the Trust Deed process in more detail.
Saturday, June 25, 2011 6:33:00 PM
by Danny Brown
At Debt Scotland we thought it would be good if we provided a blog on the actual process of entering into a Trust Deed in Scotland and the advice that is given.
An initial call, email or on line eligibility wizard submission will be received by Debt Scotland. Upon receipt of the submission, one of our advisors will review the attached information and give you a call back at your specified time. We will discuss your particular set of circumstances as each individual has different levels of debt, income and expenditure, assets etc. We will discuss all the available options in Scotland (not just the Trust Deed) with you and then decide on what you think is the best option for you. Debt Scotland are not allowed to suggest what we think is the best option for you, we must summarise all the options and then you decide!! We can only summarise the pros and cons of all available options.
Following the initial telephone call, providing you are happy with the information provided then a home visit can be arranged in order to discuss all your options with you. There are a number of benefits to this... you receive a face to face free consultation instead of simply discussing things to a voice on the other end of the telephone. A common question and worry people have are “consultation fees”. There are no hidden costs, no upfront fees, no consultation fees etc. Everything is completely free of charge. You also get to see some of the advisors who are the driving force behind Debt Scotland and it gives you a chance to ask any questions you have in person.
The person that first deals with your enquiry will be the advisor you will generally met with. If you’re shy, nervous or even a little bit embarrassed then there is no need to be. Our advisors have years of experience and are well trained to deal with all types of scenarios from someone with £10,000 to £250,000of debt. The majority of home visits generally take place in evening as most people we assist work 9-5pm.
The hardest thing for someone to do is to actually pick up the telephone, submit their on line eligibility wizard and ask Debt Scotland for advice and perhaps assistance in relation to resolving their debt problems. Once they do this they realise that there is a solution to their problems and a way out!
Contact Debt Scotland now to discuss your particular set of circumstances.