There are over 340,000 private renters in Scotland, while the Department for Work and Pensions has warned that new benefit claimants are likely to receive less money than they had anticipated, and not as quickly as they had hoped. Many campaign groups had been hoping for an accelerated universal credit application process to help alleviate the pressure families found themselves under after the coronavirus outbreak forced businesses to close and people to stay at home as part of the lockdown measures. Speaking at a press briefing, Universal Credit director general Neil Couling said: “If you play about with the architecture of Universal Credit you won’t be able to pay the vast millions we have to pay every month.” Exact projections are expected to be released at a later date but the worst is yet to come. Neil Couling added: “Next week, that’s the really peak week. We had about 270,000 claims in the first week of the pandemic, we had 540,000 roughly in the second week, then about 380,000, and last week was about 220,000. So that’s the kind of mountain we’ve got to go up.”

Universal Credit Housing Benefits Shortfall

For private renters in Scotland, affected by the Coronavirus pandemic The housing element of the benefit only covers the lowest third of market rents in an area, meaning those paying average rents will face a shortfall. In the Greater Glasgow area, the median monthly rate for a 2-bedroom flat is £750 but the Local Housing Allowance rate (LHA) is £648. In the Edinburgh area the equivalent average for Lothian is £900 per month, with an LHA rate of £822.73. Shelter Scotland is calling for the Government to increase housing benefit so that it can cover the average cost of local rents. Assistant director of Shelter Scotland, Gordon MacRae, speaking to STV News advised that: “Thousands of renters will be in dire straits further down the line without more support from the UK Government.” “As renters lose their jobs and see their incomes hit, many will have to rely on the welfare safety net for the first time.” As part of the Coronavirus (Scotland) Act 2020 passed recently, the Scottish Government has changed the law to offer greater protection against eviction due to having rent arrears. However, these measures only postpone payment of those arrears and is not the same as a mortgage payment break.

Post Coronavirus Recession Fears

While it’s true that there is greater protection against eviction for private renters and the legal changes will buy time for those individuals to find monies to pay their landlords, post-pandemic fears of a global recession loom. A stark warning from the IMF predicts that we’ll see the worst recession since the great depression ultimately resulting in job losses and Universal Credit payments lasting longer than originally forecast. Tourism, retail, hospitality and leisure will continue to be vulnerable throughout 2020 and 2021 meaning new claimants in these sectors could be hit hardest. Women and Under 25s Hardest Hit Recent research into the financial impact of the coronavirus outbreak has found that women, low-income earners and workers under the age of 25 may be the hardest hit by the Coronavirus crisis. The Institute for Fiscal Studies reported ‘Sector shutdowns during the coronavirus crisis: which workers are most exposed?’ and advised on the numbers behind those sectors that have faced mass closures in recent times, including Tourism, retail, hospitality, childcare and leisure.

I’m worried about my unaffordable debt, what should I do?

If you’re worried about your ability to pay off your private rent arrears, mortgage or any other priority debts due to having unaffordable, unsecured debts including credit card debts, you should seek expert debt advice. During these difficult times your priorities should always be – Shelter, Utilities and Food. Most credit cards, loans and other lending sources should now grant you a loan payment break without affecting your credit. Our team of debt specialists at Trust Deed Scotland® have helped over 20,000 people in Scotland with their debt problems. Our expert, non-judgemental advice is personalised to your situation. To get started, give us a call on 0141 221 0999 or find what Scottish debt management solutions are open to you. Try our Trust Deed Wizard®

Accountant in Bankruptcy (AiB) has suspended sale and eviction from property in ongoing bankruptcy administrations until further notice in response to the current Coronavirus pandemic. New measures and greater flexibility are also being introduced by AiB – Scotland’s insolvency service – to simplify procedures to help those seeking debt relief through bankruptcy, or need more time to pay their debts through the Debt Arrangement Scheme. This action will also help alleviate the administrative burden on frontline money advisers and insolvency practitioners. AiB deals with approximately 80% of bankruptcy cases in Scotland and it has urged other trustees to show similar leniency and flexibility. Business Minister Jamie Hepburn welcomed the new measures, saying: “This pandemic will have severe economic consequences and we are treating it as an economic emergency, affecting everyone from the largest conglomerates to small businesses and individuals. “The Scottish Government is working hard to respond to this and we’ve announced a £2.2 billion package of measures to support businesses. “We’re asking banks, insurance companies and our own departments to be flexible and compassionate wherever possible, including offering mortgage holidays and extending timescales for those in persistent credit card debt. This will help reduce the pressure on individuals facing financial difficulties caused or made worse by the current crisis, and we are actively considering what more we can do to help.” Background The full list of measures being introduced by Accountant in Bankruptcy:

• in bankruptcy cases (where AiB is named as trustee), AiB will suspend action on division and sale and eviction from property until further notice
• the evidential requirements for individuals seeking debt relief through bankruptcy have been amended to allow faster access, providing protection from debt enforcement
• AiB has written to other trustees involved in the bankruptcy process requesting that similar forbearance is shown in light of the prevailing circumstances
• the processes for AiB’s determination and audit of trustee accounts will be streamlined on an interim basis with additional detail set out in a letter to all trustees
• electronic signatures on Protected Trust Deeds and associated documentation will be accepted, assisting continued access to the debt relief provided through this solution with a reduced requirement for face to face contact
• AiB’s Insolvency Registrations Team will work flexibly with money advisers and clients where there are difficulties in demonstrating income and expenditure and meeting the evidence requirements associated with the debtor application process
• AiB has asked trustees who have concerns about meeting statutory timescales for bankruptcy and Protected Trust Deeds to liaise with the appropriate AiB teams – a pragmatic approach will be taken.
• in anticipation that the COVID-19 pandemic will exacerbate issues faced by those with fluctuating earnings, with those on zero hours contracts particularly impacted, AiB has decided not to revoke Debt Arrangement Scheme (DAS) debt payment programmes due to non-payment with a causal link to COVID-19 until further notice

Trust Deed Scotland® are continuing to provide people across Scotland with tailored debt advice during this difficult time. Our debt advisors are working from home and are available Monday to Thursday 9am-8pm and Friday 9am-5pm. Call us on 01412210999, or try our Debt Repayment Calculator and get started now

Coronavirus Debt Advice Scotland – If You Are Self-Employed

If you currently live in Scotland and your income has dropped because of Coronavirus, you might be able to get money from the Government. You could get 80% of your average profits up to a maximum of £2,500 per month. This scheme is called the Self-Employment Income Support Scheme. If you’re eligible, you can get money to cover until at least the end of June 2020.

Check if you can use the Self-Employment Income Support Scheme

You can get the grant if you’re self-employed or a member of a partnership. Your self-employed profits must be less than £50,000 per year and they must make up more than half of your total income. The government will look at your tax returns from the last 3 years to see if you’re eligible – if you’re not sure you can check the Coronavirus self-employment rules on the Government’s website. You’ll also have to:

• Have lost profits due to Coronavirus
• Have submitted your tax return for the tax year 2018-19 – you need to do this by 23 April 2020 if you haven’t already
• Have earned self-employed income in the tax year 2019-20

If you don’t think you’re eligible, you can check what benefits you can get.

Check how much money you may get

You’ll get 80% of your average profits up to a maximum of £2,500 per month. HMRC will calculate your profits based on any tax returns you’ve submitted over the last 3 tax years. You’ll get 1 payment to cover the whole length of the scheme. You can find out more about the scheme rules on the Government’s website.

What to do next

You can’t apply for the scheme in Scotland yet – HMRC will contact you if they think you’re eligible. They’ll tell you when you’ll get it – it may not be until June 2020 that you are contacted. If you need money while you’re waiting, you can check what benefits you can get.

If your company pays people through PAYE

You can apply for a grant to pay them 80% of their wages under the Coronavirus Job Retention Scheme on the Government’s website. If you need help while you’re waiting for money through the Coronavirus Job Retention Scheme, you might also be able to use the Business Interruption Loan Scheme on the Government’s website .

Get Expert Self Employment Debt Advice

Are personal or business debts keeping you awake at night? You’re not alone. If you’re a sole trader or a limited company struggling with debt, we can help. Trust Deed Scotland® are continuing to provide people across Scotland with expert debt advice during this difficult time. Our debt advisors are available Monday to Thursday 9am-8pm and Friday 9am-4pm. Call us on 01412210999, or try our Self Employment Debt Calculator and get started now.

Please note that Coronavirus Payment Breaks have since been discontinued since the date this article was written, generally replaced by Tailored Support. You should contact your mortgage provider immediately if you are in danger of defaulting on your mortgage commitments.

Coronavirus Scotland – Rent And Mortgage Concerns

If you’ve been impacted by Coronavirus, whether it’s because your household bills have increased, you’ve lost 20% of your income due to being furloughed or all of your income due to being made redundant or your company going into administration; it’s important to know what you can do to help relieve the pressure caused by your debt and money worries. Having concerns over rent and mortgage debt and the threat of repossession and eviction during the Coronavirus pandemic are understandable – Trust Deed Scotland® are here for you and whilst the office may be closed, our expert advisors are continuing to work from home.

Council Tax Arrears And Coronavirus

If you think you will miss a council tax payment during Covid-19 crisis, you should let the council know as soon as possible. You can use the Government’s council tax contacts locator tool to find their contact details. You may also be eligible for a reduction in council tax payment if your income has been affected. Trust Deed Scotland® suggests using Citizens Advice Scotland’s online calculator to check if you can save money on your council tax bill.

How Do I Apply For A Mortgage Payment Break?

Trust Deed Scotland® understands that Mortgage lenders have announced support for those who need to take time off work because of coronavirus, including a mortgage break. You will need to speak with your mortgage lender directly to find out if they will be able to offer you a mortgage payment break, or any other form of financial support, based on your personal circumstances. In normal circumstances, lenders would take an extensive look at your personal circumstances to provide you with the best option. This is now being relaxed to allow for an easier process to be put in place. Therefore, it’s important that you contact your mortgage lender as soon as possible if you have been, or think you will be impacted by Coronavirus. By doing this, you can come to a mutual decision whether the break is the right solution for you. Royal Bank of Scotland and its subsidiary Natwest, are offering three-month payment breaks to their mortgage customers, waiving early closure charges on fixed savings accounts and refunds on any cash advance fees. First Direct has introduced a mortgage extension programme, which allows people to extend the remaining term of their mortgage or switch their rate. Barclays Bank have removed all penalty charges for accessing fixed savings accounts early. Santander is offering support tailored to individual situations such as deferring or reducing repayments that are due in the coming months The majority of UK banks are offering increases on withdrawal limits on debit cards or credit cards. However, if you are considering extending your credit limit, think about what you can do to avoid this scenario, treat it as a final option as you will need to repay this at a later date. Some banks are waiving any fees for missed payments.

Does A Mortgage Payment Break Affect My Credit Rating?

Before Coronavirus, deferring your mortgage payments would have been reported to the credit reference agencies by your lender. The landscape has changed and it now means that it won’t necessarily affect your credit score. As this has been agreed in advance, you should not technically fall into arrears. But, before assuming that your lender will automatically apply these new rules, check with them directly. Most major banks have also confirmed that taking a payment break would not affect customers’ credit files.

Will My Home Be Repossessed In Scotland During The Coronavirus Outbreak?

Those worried about repossession should not be at risk of losing their homes during this period but do speak with your lender. If you have a mortgage with an unregulated or inactive lender and would not normally fall under the scope of these new Coronavirus changes, it is understood your mortgage lender will adopt this guidance on a voluntary basis. Contact Trust Deed Scotland® for more information.

Buying And Selling Property During Coronavirus

The Scottish Government has issued guidance for people who are in the process of buying or selling their home. The government has further recommended whilst the lockdown is in operation you should, if possible, delay the move and in all situations, you should speak to your solicitor first.

Rent Worries During Coronavirus In Scotland

If you are worried about paying your rent and you’re looking for a rent payment break – talk to your landlord as soon as you possibly can, even if you haven’t missed a payment yet but are worried you might. Let your landlord or housing association know how you’re affected by the Coronavirus and explore your options in regards to getting a rent payment break. The Scottish Government is working to pull together support and guidance that protects both tenants and landlords, providing assurance that no one will be evicted because of Coronavirus for at least a six-month period. The Scottish Government has announced that it will bring in legislation to stop evictions in the private and social sectors for up to 6 months. Private Rented Tenancies The Housing and Property Chamber announced that all hearings and case management discussions will be postponed from 19 March 2020, this means that there will be no new eviction orders granted for private rented tenancies until 28 May 2020 at the earliest. It isn’t clear whether evictions will still go ahead if your landlord has already applied for and obtained an eviction order, we will update this page as and when this is clarified. Social Housing Association Tenancies The SFHA has announced that there will be no evictions or housing association’s tenants due to financial hardship brought on by Coronavirus. Trust Deed Scotland recommends following your housing association’s social media profiles and bookmarking their websites. Glasgow Housing Association have a dedicated Covid-19 section, likewise most, if not all of the

Illegal Eviction During Coronavirus

Illegal eviction in Scotland is a criminal offence – the coronavirus outbreak doesn’t change this. Illegal eviction is when you are forced to leave your home by someone who does not have the legal right to do this. You might be illegally evicted if:

• Your landlord changes the locks
• Your landlord stops you from getting into your home
• Your landlord makes life so uncomfortable for you that you are forced to leave your home, for example by cutting off your electricity or gas supplies
• Your landlord turns up at unsociable hours
• You are physically removed from the property by a person who is not a sheriff officer.

If you live with your landlord then they won’t need to get a court order before they can evict you. However, your landlord will still need to give you proper and reasonable notice that they want you to leave, they can not just kick you out.

Where To Get Debt Advice During Coronavirus?

If you are worried about how Covid-19 could affect your finances and your ability to commit to your debt repayments, get in touch. We offer expert debt advice and debt solutions. Trust Deed Scotland® are continuing to provide people across Scotland with tailored debt advice during this difficult time. Our debt advisors are working from home and are available Monday to Thursday 9am – 8pm and Friday 9am – 5pm. Try our debt repayment calculator to get started or call us on 01412210999.

Household budgeting while Furloughed

Due to the unprecedented circumstances of the Coronavirus pandemic, households throughout Scotland are facing redundancy, furlough and the biggest flu outbreak since the end of the first world war. Most of us know the physical symptoms of Covid-19 by now, but the non-medical symptoms and diagnosis are just as worrying for some as the cough, fever and loss of a sense of smell. And, like the Covid-19 flu itself, some of us are resistant and unaffected in many ways. For many in Scotland, the perception is that our incomes and outgoings have been turned on their head in just a few short weeks. Many people are more worried about their disposable incomes than ever before. But, for those of you that have been furloughed – are your finances ironically now better now than they had been before?

Household Budgeting Guide

Losing 20% of our monthly salaries can make some of us better off financially. Really? Think about it, there are at least seven short term savings available. 1. No Restaurants or Bars Nice family meals, trips to McDonald’s. The lunchtime trip to Greggs with the extra pastry or treat. All now gone. The few pints after work, the Stag and Hen nights; gigs and club nights – all those nights than can cost in excess of £100 per night; not possible for a good while yet. In fact, with supermarket restrictions in place; it’s difficult to buy 2. Travel Expenses Whether it’s your Scotrail smart card train ticket, or your usual fuel cost – there are fewer expenditures here for most of us, furloughed or not. 3. No Holiday Whether you pay up your holiday monthly through a high street travel agent such as Barrhead Travel, or Kuoni or an online vendor such as icelolly.com – be it a family trip to Orlando, luxurious beaches in Mexico or a package holiday on a Mediterranean beach…Chances are, it’s not going to happen this year. Plus, we’ve not got the associated costs either; new summer clothing, sunglasses, suntan lotion; renewed passports – it all adds up. 4. Mortgage Payment Breaks Most mortgage lenders are providing payment breaks of 3 months, without affecting your credit rating. Mortgages are always lent on the basis of a salary multiplier; so losing 100% of your mortgage payments and trading off with 20% less pay seems like a negative. But, with careful planning – this can be turned around into a positive. Find out more about mortgage payment breaks we wrote about earlier. 5. Childcare Costs No more nursery and childminder fees. 6. Entertainment With cinemas, football matches and all other activities on hold; entertainment opportunities are limited. 7. Subscriptions Gyms and leisure are closed – so there’s a monthly saving here; be it a cheap and cheerful PureGym or a more luxurious David Lloyd. Sky Sports are offering lesser subscriptions minus sports too.

Where might we be spending more in our Budgets?

Increased Utility Bills We’re in the house for longer – eating up electricity and gas. Make sure your Coronavirus household budget accounts for this. Think about switching providers during these times. It’s usually cheaper to do online and doesn’t involve any paperwork. Providers such as Bulb offer refer a friend saving schemes to help. Online shopping ASOS came under criticism recently for behaving like its business as usual.  Couriers are still delivering and the grey area of essential vs non-essential shopping is coming under increased scrutiny. Retailers such as Amazon still continue to trade online However, this is an area where we need to be careful – boredom, credit card and an abundance of spare time are never a good combination. But, with an abundance of spare time, it’s possible to use that time productively and shop around for savings during the Coronavirus pandemic. Mobile phone contracts, broadband and TV, insurance policies – the time of activities most of us never have enough time to get around to; now is the time to shop around for the best deals and take advantage of opportunities presented by organisations desperate to keep their sales and retention teams active. Coronavirus household budgeting while redundant and out of work The Coronavirus job retention scheme isn’t perfect for everyone of course. Some employers have not been as considerate to their employees and then unfortunately, many businesses have been forced to close through no fault of their own. Universal Credit claims are being fast-tracked and recently unemployed workers in Scotland protected like never before. However, with social distancing restrictions and economic fewer jobs are available. s1jobs.com, the leading job board in Scotland, usually has over 6,000 jobs on its website at any time; currently, this is hovering over the 2,000 level. Fortunately, some retail opportunities have opened up for temporary jobs in supermarkets and logistics for anyone in need of a new job urgently and again, these opportunities are being fast-tracked with a wider range of candidates considered. While no-one can predict exactly what will happen next in this modern-day phenomenon, you may be wondering what action you can take to reduce the impact on your finances in the months ahead. The comforting news is for everyone is there are plenty of ways to reduce your outgoings, make the most of what you have and save for the future.

Household budgeting for the self-employed

An extra challenge for over 300,000 self-employed people in Scotland is awaiting their Self-employment Income Support Scheme grant is filling out the forms and awaiting payment. However, in order to claim this, you must have submitted your tax return for the tax year 2018-19 – you need to do this by 23 April 2020 if you haven’t already

Household budgeting and debt repayment

Trust Deed Scotland knows through experience that helping people to face up to their financial difficulties can be challenging. Having assisted over [volume] people in Scotland, thousands have left reviews on TrustPilot. In their own words, our clients tell us that they feel embarrassed or ashamed to seek help over their unaffordable debts. And, in the same reviews; many say that they wished they’d asked for help sooner and describe how our experienced debt advisers helped them feel at ease, by giving them non-judgmental advice. If you are struggling with debts, we advise you to speak to our experienced debt advisers and find out more about the options open to you. Protected Trust Deeds and the Debt Arrangement Scheme Call us on 0141 221 0999 to get started, or try our Debt Repayment Calculator to explore your options.

Many people in Scotland are already struggling financially due to the impact of Coronavirus on their finances. And unfortunately, one crisis offers an opportunity to another. Already, the National Fraud Intelligence Bureau says that victims have already lost almost a million pounds to coronavirus scams. We’ve included details of some of the most common scams and advice on how to avoid them. As well as taking a look for yourself at this advice, Trust Deed Scotland® urges you to share this advice using and make sure the older and more vulnerable people in your life know how to keep themselves and their money safe.

Text Message Scams

Trust Deed Scotland® has learned that some of the worst Coronavirus scams uncovered so far have been delivered by text message. Such is our mistrust of unsolicited SMS messaging, many people took to social media to report the Government’s own SMS text. The UK government has only sent out one official text message thus far to the Scottish public. It reads: ‘GOV.UK CORONAVIRUS ALERT New rules in force now: you must stay at home. More info & exemptions at gov.uk/coronavirus Stay at home. Protect the NHS. Save lives.’ If you have seen any other text messages claiming to be from the government. They may say that you can claim money, or that you must pay a fine for leaving the house. These unsolicited SMS messages are fraudulent. Don’t click on any links, give out any personal details, or do anything that these text messages may ask you to do.

Debt Advice Coronavirus Scams

Trust Deed Scotland®, the UKs leading debt advice company, with thousands of reviews on Trustpilot with a rank of 1^st out of 32, has learned of companies impersonating us during the Coronavirus crisis. If you have received a cold call or text message out of the blue, trust that it is not Trust Deed Scotland®. Our clients have informed us that ‘clones’ have called them pretending to be from ourselves. We’re advising anyone who receives any unsolicited calls or text messages from any purporting to be from Trust Deed Scotland® to get in touch with us on 0141 221 0999. Trust Deed Scotland® does not charge setup fees for our advice or services and will never ask you for any upfront setup fees for our service. It’s not only Trust Deed Scotland® that is being targeted in such a manner but also debt charities such as Citizens Advice Scotland, Stepchange and Christians Again Poverty. While the government is working hard to help Scottish residents, including new legislation intended to help people threatened with action such as Wage Arrestment, in their newest Coronavirus 2020 Bill, the government themselves do not contact individuals directly offering Trust Deeds or Debt Arrangement Schemes. Similarly, the government doesn’t pass this task out to other companies to carry out on their behalf, therefore any phone calls that you receive, text messages or adverts that you see on Google, Facebook or anywhere else offering ‘Government approved schemes’ or ‘Government approved debt help’ should be immediately disregarded as potentially fraudulent.

Other Coranavirus Scams to look out for

Insurance fraud Some people have reported calls or emails from scammers imitating insurance firms. They may offer you life insurance, or help to recover money lost from holidays or weddings cancelled due to coronavirus. Financial services scams Emails are circulating that invite people to pay upfront to take out a loan or another form of credit. And if you receive any contact from your bank, make sure it’s really them – see the Know Fraud, No Fraud. Online shopping scams PPE products, commonly face masks and hand sanitiser, are being sold at inflated prices. Not only should you be wary of unscrupulous individuals selling these products, but also some of the world’s best-known online shopping vendors selling products at greatly inflated prices and there have been reports that these items don’t even arrive. Stockmarket scams Using the uncertainty around stockmarkets to advise you to invest or move existing investments into non-standard investments. Coronavirus Phishing scam emails These are always common at all times. However, an increasing number lot of criminals have added a coronavirus slant to their usual phishing scams. Be very wary of emails claiming to be from HMRC or the NHS. Don’t click on the links or attachments in suspicious emails. Indications that an email you receive may not be genuine include a lot of spelling/and or grammar mistakes, a long or complicated email address, and anything that asks for your financial details. Spammers often buy domains that mimic a brand’s identity. E.g. by adding hyphens in a domain name; this is a well-known and proven scam; particularly for a financial advice website. Domain name hyphen? Chuck it in the bin. Never respond to unexpected messages or calls asking for your personal details or bank details. Even if the callers claim to be from an organisation that you know, like your bank or an insurance firm, or even Trust Deed Scotland® remember that it may not be genuine. The British Bankers’ Association run a campaign called Know Fraud, No Fraud, which lists eight things your bank will never do when they call you or email you.

1. Call or email to ask you for your full PIN number or any online banking passwords
2. Send someone to your home to collect cash, bank cards or anything else
3. Ask you to email or text personal or banking information
4. Send an email with a link to a page which asks you to enter your online banking log-in details
5. Ask you to authorise the transfer of funds to a new account or hand over cash
6. Call to advise you to buy diamonds or land or other commodities
7. Ask you to carry out a test transaction online
8. Provide banking services through any mobile apps other than the bank’s official apps

Likewise, if you receive a suspicious call and you’re not sure hang up, restart your phone, then call the company on a number that you know is genuine.

Doorstep Scams

Anyone delivering goods and services of any description will be observing social distance guidelines whether you ordered the service or not. These should be easy to spot because nobody should be coming to your door at the moment at all. There have been reports of criminals taking advantage of people who are self-isolating or working from home. They may pretend to sell cleaning services, or offer to get your messages in as we say in Scotland. Turn away any strangers offering services such as cleaning the inside of your house. Don’t give anyone your money, bank cards or credit cards to anyone offering to run errands for you. Ask for ID from anyone who says they are from a utilities company, health service or similar. Please make sure that any older and vulnerable loved ones are alert to these risks too.

Protect Yourself Against Coronavirus Scams

As well as the steps above, you can further protect yourself against Coronavirus scams by:

• Always installing the latest software and app updates to protect your phone, tablet or laptop
• Where possible, ask a friend or family member for a second opinion before completing any purchases online
• Calling the organisation that you contacted direct

The Official Trust Deed Scotland

If you get a phone call from someone introducing themselves as Trust Deed Scotland® you can call us directly on 01412210999 or by reading our handy guide: Making sure it’s Trust Deed Scotland.

Coronavirus Financial Advice

At Trust Deed Scotland® we understand that debt can be overwhelming,

You may be finding it difficult to cope already and with the current conditions, this may be causing you to worry further about how you will afford to repay your unsecured debt, don’t worry every year we help thousands of Scottish residents enjoy a debt free future. To get started, call us on 0141 221 0999 or try our Trust Deed Wizard®    

As Scotland goes into another week of lockdown in response to the Coronavirus outbreak, households across Scotland are considering their Coronavirus budgets and finding ways to reduce their monthly outgoings. For many of us, paying for a car including vehicle finance, car insurance, MOT & car servicing costs and insurance is a major financial outlay which most of us would also categorise as an essential outlay. With this in mind, here are some of the options for drivers who might want to park their costs for a while.

Unaffordable Car Finance

Considering the unique circumstances presented by the Coronavirus situation, your vehicle finance lender may be able to offer a freeze, a deferment or an extension your financial agreement. You should ensure that you contact your car finance company as soon as possible to let them know what your situation is. Most car finance companies will have updated their websites with their current Coronavirus information. Ford Credit has introduced special Coronavirus measures for anyone leasing their car through Ford Credit to offset the potential economic impact of the Covid-19 outbreak. Alphera Financial Solutions are a car finance lender who is offering Coronavirus car finance breaks for example and Blue Motor Finance has said that they will review each payment holiday request on an individual basis. Volkswagen Financial Services have advised that they will offer ‘breathing space’ for up to 60 days.

Buying A Car During the Coronavirus Pandemic

It will be difficult to purchase another car from a showroom for obvious reasons. Arnold Clark have closed their forecourts but online dealers Motors.co.uk have said: “Many dealerships and manufacturers are offering the ability to buy a car completely remotely. Simply browse the internet for a used car that you like, and then get in touch with the dealer to see if contactless purchasing is available. You may be able to do everything – get an around-car video, see potential finance deals and sign necessary paperwork – all without having to leave the house. It can then be delivered to your home at a time that suits you. Delivery companies are also disinfecting cars by cleaning key surfaces to ensure to lower the possible chance of contamination.” Autotrader wrote a feature on safely buying and selling a car during the Coronavirus outbreak. However, Autotrader was also keen to stress that if the delivery of a new car is non-essential, to consider waiting until lockdown measures are eased.

Cancelling Car Finance During Coronavirus

We’ve been advised to stay at home for an undetermined length of time. While the optimistic among us expected to be out of lockdown in the next couple of weeks, the pessimists among us think we’ll be in lockdown for a number of months. However, regardless of how long we’re under lockdown conditions, many of us may consider just handing back the cars and cancelling car finance arrangements. HP – Hire Purchase You’ll need to have paid off at least 50% or more of the total amount due. With a hire purchase agreement, you’re more likely to be halfway through your agreement when you’re halfway through your contract because you most likely paid a deposit at the outset of the HP agreement. PCP – Personal Contract Purchase With a PCP financial agreement, you can cancel and hand the car back as soon as you’ve paid back 50% or more of the total amount due to the vehicle financing lender. However, consider that this includes the balloon payment that you’re due to pay at the end of the contract. If you haven’t yet reached 50% repayment of the total due, you do have the option of paying the difference. PCH – Personal Contract Hire Usually, the terms are fixed making it more difficult to cancel a PCH finance agreement before the end of the term. In order to get out of your contract, you will need to pay any outstanding fees in full. If you do have a PCH agreement, you would be better off speaking to the lender and asking what solutions are in place for their customers. If you have a Personal Contract Hire agreement, or indeed HP or PCP agreement and you’re worried about repaying your future payments. You can also keep up to date with industry developments by following the BVRLA website.

Car Servicing During Coronavirus

Most car finance agreements ask that you keep your car in good working order throughout the terms of your agreement, but this has been made more difficult during the Coronavirus crisis. You can check directly with your manufacturer what their level of support will be. The most sensible solution being offered is to extend this by three months, or a set number of miles but make sure that you find out what the policy is, due to the ever-changing nature of Coronavirus lockdown restrictions. Garages in Scotland and some manufacturer workshops and service centres will still stay open to help with essential vehicle maintenance and repairs, and many of those will be giving priority to frontline workers and NHS employees, worth bearing in mind if you’re a frontline worker.

MOT Servicing During Coronavirus

The Government has granted a six-month MOT Coronavirus exemption for vehicles that were due their MOT, effective from 30th March onwards. However, while all the authorities involved are taking a more lenient view on this, you are still responsible for keeping your vehicle in a safe and roadworthy condition and must, therefore, apply your own judgement on whether it is safe for your own, and other drivers during the fight against Covid-19.  Any callout from a mechanic will most likely risk that mechanic to the dangers of Coronavirus.

Car Insurance During Coronavirus

Some car insurers are offering their customers an option to suspend car insurance during Coronavirus. If you have missed a car insurance payment already, contact your insurer as soon as possible because, if you miss a payment and you don’t notify your insurance provider, they may cancel your policy, leaving you without valid insurance. It’s a legal requirement for your vehicle to be insured, even if you’re not driving it, unless it is declared as ‘off the road’ with the DVLA. You can find more information on Statutory Off Road Notifications. Also if you’re using your car for work purposes during the outbreak and you didn’t declare this when you took out the policy, check your policy is covered for work purposes as some providers such as esure.com have a limitation in their policy for Social Domestic and Pleasure restrictions.

Can You Keep A Car During A Trust Deed?

If you need a car, you can keep one during your Protected Trust Deed or Debt Arrangement Scheme whether you own the car outright, or it’s on car finance. Your reasonable need for a vehicle might be based upon your work requirements or commute It could relate to taking children to school or living remotely. This will remain true before, after, or during the Coronavirus outbreak and removing these reasons will not mean that your car will be removed as a result. If you’re struggling with unaffordable debts you may be finding it difficult to cope already and with the current conditions, this may be causing you to worry further about how you will afford to repay your unsecured debt, don’t worry every year we help thousands of Scottish residents enjoy a debt free future. To get started, call us on 0141 221 0999 or try our online Trust Deed Wizard tool.

Coronavirus Advice And Utility Bills

We’ve all been asked to do our bit in the fight against Coronavirus in Scotland. We’ve all heard the rallying bugle calls and the vast majority of us have heeded the advice of our Government and stayed at home, protected the NHS and saved lives. However, with an increased amount of time in our homes as we fight the virus wearing our capes from the comfort of our couches, we’re regrettably increasing the cost of our electricity and gas consumption, meaning that we’re accruing substantial utility bills, directly after the heftiest period in our energy billing cycle: Winter. Ofgem, the industry regulators, have even set up their own Covid-19 energy news section due to increased demands for information. It’s an ideal source of information where you will be able to keep up to date with the latest Government guidance, should you encounter a power cut, gas leak or meter issue. Research from uSwitch shows that we can expect an average increase in our Coronavirus energy bills of £195 per year across households in Scotland as we self-isolate. This is based on the assumption that the average household will consume 25% more electricity and 17% more gas per day.

Utility Bills Debts

Arrears for utility bills from a previous address can be included within a Trust Deed, or Debt Arrangement Scheme, however, if you’re struggling with your current supplier – you should treat your gas and electric bills as a priority debt. Alongside your mortgage and rent, and council tax. If you can’t pay your energy bills, the government announced in March that it would ensure that the most vulnerable people would be protected from losing power and gas to their homes. As a result, all energy suppliers have vowed to help anyone struggling to repay their bills. This means that there is an extra level of security knowing that you will not be left to self-isolate without your gas and electricity. We’ve included links to the major energy providers and their individual Coronavirus help centres: Scottish Power British Gas SSE E-On EDF Energy Power Octopus Energy The energy providers have mostly said that they will deal with their customers on a case-by-case basis. However, if you’re struggling financially remember that you’re not getting to waive your utility bills completely but deferring payments with continuous supply but without penalty. Options open to you

• Delaying the date your bill is due
• Extending the payment period
• Suspension of late payment fees

Understandably, all providers are having to work with reduced staff capacity and higher volumes of calls meaning you will have a longer wait time than usual. If this happens, we advise that you search the energy providers website for available LiveChat facilities, WhatsApp or contact them via Twitter, Facebook and Instagram; wherever else they have a presence on social media, or online. Contact them as soon as you can, and try to remain calm while you wait. Remember, the call centre operators are getting used to the new working conditions as much as yourself.

Reducing Energy Bills during the Coronavirus outbreak

While we can add extra layers of clothing, read more and switch off our TVs and mobile phones while we talk to our loved ones and play board games with the kids, a more practical way of saving money would be to switch providers. Ofgem recommends switching energy suppliers and shopping for a better energy deal regularly to save money. You can try the Citizens Advice energy comparison tool. You can also try one of these Ofgem accredited energy price comparison sites Energy Helpline  Energylinx  The Energy Shop  Money Supermarket  My Utility Genius Runpath Simply Switch Switch Gas and Electric Quotezone  Unravel It  uSwitch  Other measures we can take to save money on energy bills during the Coronavirus, or beyond include: Washing Machines and Tumble Dryers – Washing at 20°C or 30°C instead of 40°C. Which? wrote “When we tested machines on the 20°C cotton program, we found that turning down the temperature from 40°C dramatically reduced washing machine running costs – by an average of 66%. This is because washing machines need to use less energy to heat water to lower temperatures.” Hang washing outside if safe to do so with social distancing restrictions in place and/or use clothing racks instead of the tumble dryer. Switching lightbulbs – LED lightbulbs use 20% of the power of traditional incandescent lightbulbs. Conserving Gas – Shorter showers, adjusting the central heating to a lesser degree on the thermostat and turning off radiators in some rooms all help. Conserving Electric –  Turn devices off at the wall and don’t leave them on standby as this can account for 10% of your typical bill, self-isolating or not. Use natural light and keep your fridge and freezer at their ideal temperature. For your fridge this is between 2°C and 3°C and your freezer should be at -18°C. Ask your employer if you can make a claim for utility bills. You can claim back between £4-£6 per week – if your employer says no, you can complete a self-assessment and declare on your tax return.

Self-Isolation & Prepayment Meters

If you or your family are self-isolating, or access to locations that offer prepayment services have been reduced – understandable this will cause further stress and anxiety should you be self-isolating. If you can, you can ask a friend of the family for help topping up. You can find help from local Facebook groups and charities, but always be vigilant to stay safe against Coronavirus scams. Ask your energy provider if a prepaid card can be sent Your energy provider may further access your situation on a case-by-case basis. Trust Deed Scotland has reached out to the Secretary of State for Business, Energy and Industrial Strategy Alok Sharma to find out if further help will be offered to those on prepayment meters, but as yet haven’t received a response.

Broadband, Telephone & Television Subscriptions

The average household can save £69 on their broadband bills by switching when their contract ends according to uSwitch. Home phone bills can be expensive, especially when many of us currently have evening and weekend packages. Broadband too can be expensive so we’ve pulled together a few tips to help keep your broadband bills lower.

• Switch supplier. Sticking with the same broadband and home phone provider can be expensive. uSwitch reports instances where bills have jumped 400% when a contract is rolled over!
• Match your deal to your needs – Be careful you’re not spending money on channels and data you don’t use, or get charged for going over your limit. If you’re not sure how much you use, ask your broadband supplier. And if you do have an evening and weekend package – check the costs per connection. Don’t get caught out with calls being charged when they reach a certain length.
• Landline Small Print –  In many cases you need a landline to get broadband, but not all. Take into account your landline costs when looking at comparing broadband prices as many seemingly cheap deals require you to take out expensive line rental.
• Look at monthly and annual cost breakdown – Beware 6 months and 12 months reduced price deals. If you are committed to 24-month contracts this will result in you being tied into an unaffordable subscription at worst or any unwelcome surprises. As many people will testify, the providers aren’t as keen to remind you about their increased cost when they become due, as they were when you signed up with them! All of a sudden, your direct debit takes a substantial hit.
• Upsell, Cross-sell,  Bait and Switch – Watch out for these tactics used by many companies offering services who will use these tactics to increase the monthly subscription cost, and marketed to you as an affordable upgrade. A couple of quid here, a couple of pounds there – Before you know it – you’ve signed up for a 10 room TV subscription and you only have 5 rooms or less in your home!
• Promoted Products – As much as we love comparison sites, watch out for them leaning you towards one product over another. As much as we love Martin Lewis and his MoneySavingExpert.com website, especially during the Coronavirus Outbreak, where he’s doing an admirable job – his website is ultimately an affiliate site, which makes money itself by referring you to particular brands, products and services.
• Cease and Re-Provide – If your broadband, telephone and television contract is due to end with your current provider; you cancel the agreement and tell your provider that you are moving to a competitor of theirs. This is where you get moved over to the suppliers ‘retention’ team, which usually means that a significant discount can be achieved because those teams have more saving abilities than the standard call centre operator. Why? Because at this point, they would rather lose ‘margin’ on you than lose your money completely. And, if you can tough it out and keep your provider hanging out for longer, you may be able to barter a better deal for yourself. Lastly, check your contract for charges for canceling the contract and only explore the cease and re-provide option if you feel confident enough to carry this out.

Ofcom, the regulators of broadband and telephone services have an approved list of accredited broadband websites that you can use to compare deals.

Streaming Services

Watch out for special deals from streaming services providers. Disney+ is offering a 7 day free trial with content to suit the kids and the rest of the family alike. Amazon Prime is offering a 30-day free trial. Britbox, which offers a combination of BBC and ITV content is offering 30 days free too. Netflix unfortunately no longer offer free trials, but like other streaming services provider do offer rolling monthly contracts and again there is content in there for all the family.

Utility Bills Debt Advice

A gas or electric bill on its own is not significant enough to explore Scottish debt solutions such as Trust Deeds, Debt Arrangement Scheme or Minimal Asset Process. Typically previous property gas and electric bills can be added as a creditor in these situations, however, there should be a significant amount owed overall and the minimum level of unaffordable debt required for a Trust Deed us £5,000 or more. At Trust Deed Scotland® we understand that debt can be overwhelming, You may be finding it difficult to cope already and with the current conditions, this may be causing you to worry further about how you will afford to repay your unsecured debt including utility bills, don’t worry every year we help thousands of Scottish residents enjoy a brighter future. To get started, call us on 0141 221 0999 or try our Trust Deed Wizard® tool.