Category: Cost Of Living Crisis

Cost Of Living Scotland: Petrol Prices

Posted on by Craig Stocks
In the latest of our cost of living crisis in Scotland series of articles, Trust Deed Scotland® focuses on petrol price increases in Scotland. Recently, as reported by the RAC, petrol prices have just topped £100 to fill up the average family car in the UK. With day-to-day costs like energy bills, the weekly food shop and rent are rising steeply. If you’re worried about being able to afford to live, you’re not alone. Many people are struggling to cope with the rising cost of living, so if you feel like you have reached a level where your debts have become unaffordable, it’s important that you seek tailored Scottish debt advice as quickly as you can. Andrea Coscelli, CEO of the Competition and Markets Authority (CMA) recently said record pump prices are ‘causing significant concern’ for millions of people in the UK and that the watchdog will carry out a ‘short and focused review’ of fuel prices. As many as 21% of the Scottish population live in rural areas, depending on petrol for necessitous journies however many of these areas are inhabited by a higher percentage of elderly residents who have been identified as a group who are more at risk with the rising cost of living in Scotland. However high road fuel prices are causing significant concern for the millions of consumers and businesses who rely on being able to afford to fill up their vehicles. PetrolPices.com reports that the average petrol prices in Scotland rose from 127.92 pence per litre (PPL) in Jun 2021 to 184.64 PPL in June 2022. A 44.34% increase in Scottish petrol prices. Similarly, diesel prices in Scotland rose from 130.09 PPL to 190.78. A 46.65% increase in Scottish diesel prices.

Why are petrol prices so expensive in Scotland?

Petrol prices have increased sharply in Scotland because the price for crude oil, which is used to make petrol and diesel, has gone up. Crude oil was cheaper at the beginning of the Covid pandemic because many businesses temporarily closed and demand for energy collapsed. However, this has been impacted further by the war in Ukraine with sanctions being placed on Russia. 11% of UK oil is imported from Russia. As life returned to normal for most people across Scotland, the demand for energy increased. Suppliers have struggled to keep up and prices have risen. Another problem causing an increase in Petrol Prices increasing in Scotland is that the oil used to make petrol is paid for in US dollars. The pound is weak against the dollar at the moment, which makes fuel even more expensive. Petrol stations say that they have been ‘unfairly scapegoated’  after the UK government raised concerns a 5p fuel duty cut was not being passed on quickly enough to drivers. So far neither the Scottish nor UK governments have ruled out specific measures to tackle increasing petrol prices but have put together a £37bn package to help families deal with the wider rises in the cost of living such as the recent announcement that Scottish households will get a £400 energy bill discount.

How to get cheaper petrol in Scotland?

The price comparison website confused.com offer a service that allows you to search for petrol and diesel in your area by entering your postcode. PetrolPrices.com also show the cheapest petrol stations per area, however, you will need to sign up for a free account to be presented with any useful information. MoneySavingExpert.com working alongside RAC offers some practical advice on making your car more fuel-efficient. That advice includes keeping your tyres inflated and decluttering your car to then also making some recommendations about driving your car more efficiently including how you brake, to changing gears and acceleration tips.

Help to repay unaffordable debt in Scotland

The cost of living crisis is affecting people from all walks of life across Scotland, whether they are in financial difficulties or not. However, if you feel like you’re really struggling with your unaffordable debts as a result of not having enough money to pay all your bills there is help available for you. Trust Deed Scotland® have helped thousands of people in Scotland since 2009. We have dealt with cases that included council tax arrears, credit card debts and payday loans. We’ve successfully prevented and lifted creditor enforcement actions such as Wage Arrestments. Whatever the cause of your money problems, Trust Deed Scotland®  can help you to understand your options, find a solution and let you focus on enjoying a brighter future. Contact us on 0141 221 0999, or start by simply using our debt calculator tool online to quickly check what your options may look like. Download our Scottish debt guide for more information on the types of solutions available for you.

Cost Of Living Scotland: Childcare Costs

Posted on by Craig Stocks
As we head into the October half term holidays across much of Scotland next week, new data has emerged showing the true extent of the cost of childcare in Scotland. The Prince’s Responsible Business Network highlights that as much as 51% of a parent’s salary is spent on a full-time nursery placement where they have children under the age of two. This equates to more than half the pay of an average adult in Scotland based on the median weekly take-home pay of a working-age adult in Scotland being £418p/w. Additional research published by workingmums.co.uk, a job board for professional women in the UK shows that:
  • 58% of mums were looking to change jobs, increase their hours or do an additional job
  • 51% of mums said the cost of living was affecting their childcare decisions
  • 49% said lack of childcare was stopping them working more hours
  • 49% had not had a pay rise in line with inflation
  • 10% have £20,000 or more worth of debt
  • Alarmingly, 7% are relying on food banks to feed their family
Whether in a relationship or a single parent, the ability of mums to earn more money for themselves will always be limited by access to childcare and the support network around them. Quite simply, increasing hours isn’t possible without childcare support. Families with children in all age groups are feeling the impact of the cost of living crisis in Scotland. As reported by STV earlier this year, many children from low-income families have returned their lunch money to their parents in order to pay for household bills. A further £1m is owed by pupils in the final years of primary school as parents struggle with the cost of living with local authorities using sheriff officers to reclaim the sums owed from their parents.

One in five adults is behind on at least one household bill

Research by the debt charity Money Advice Trust found that 45% of families with children were reported to be in debt. However, problem debt can happen to anyone with many people with different circumstances affected too. 21% of UK adults are estimated to be behind on at least one household bill, with as many as 14% having sold their personal belongings just to get by. The same survey data highlighted that 29% of UK adults are using their credit cards to pay for essentials whilst 10% are borrowing from friends and family. Whether a person borrows from a credit card lender, or from a friend, a family member or a work colleague the likelihood is that the debt will continue to escalate until it becomes unaffordable.

Help with unaffordable debt in Scotland

The cost of living crisis in Scotland continues to impact the lives of many people as it has done for some while now. In a survey of existing Trust Deed Scotland customers in February 2022, 21.62% reported that the cost of living was the event that triggered them to seek help. Typically divorce and separation, poor money management and ill health may be among the most common reasons that people seek help with their debts. Undoubtedly, if the same survey questions were asked of our latest customers who sought help from us between March 2022 to October 2022 this percentage will be significantly higher. An ONS survey from April to May 2022 found that 77% reported feeling very, or somewhat worried about the rising costs of living, 90% of parents with a dependent child aged 0-4 years said they were somewhat worried about the rising cost of living. 80% of parents with a dependent child aged 5 years and above said they were very/somewhat worried about the rising cost of living. With energy bills set to increase this month, you may be worried about how you’ll be able to pay for your other household bills like childcare, food, rent or mortgage and things like clothing. In the same survey of our customers earlier this year, respondents were asked how long they waited before they asked for help with their debts. Whilst 17.61% got help straight away and a further 24.98% got help within a year, unfortunately, many people with unaffordable debt in Scotland waited longer. 29.33% waited 1-2 years, 14.25% waited 3-4 years and 13.82% waited over 4 years. The biggest reason why people put off seeking help with their debt sooner than they did was that they felt ashamed or embarrassed about their debt. 31.89% responded with this answer. Trust Deed Scotland® provide tailored debt advice on all available debt solutions in Scotland. We know that asking for help is a big deal and we always urge that people read our Trustpilot reviews firstly as the [reviews] reviews from customers written in their own words can help empower you to seek help if you need it and to understand that you are not alone and that others are in the same position as you. We firmly believe that reading our customer reviews is the best way for people to understand who we are, what we do and why we can be trusted more than anyone else. Indeed, we’ve got more 5 star Trustpilot reviews than all other Trust Deed providers combined. Our experienced debt advisers make sure that our clients get personalised debt advice based on their affordability, lifestyle and needs. ☑️ Unaffordable debt written off ☑️ Reduced monthly payments ☑️ Interest and charges frozen ☑️ Home and car protected ☑️ Creditor contact reduced To find out more about the Advantages & Disadvantages of all formal debt solutions in Scotland, get started now by trying our Trust Deed Wizard® tool, or by calling us on 0141 221 0999.
May not be suitable in all circumstances. Fees apply. Your credit rating may be affected. Free advice also available from moneyhelper.org.uk.

Cost Of Living Crisis: Christmas

Posted on by Craig Stocks
More evidence has emerged of the extent Scots are worried about how they’ll be able to cope during Christmas. As a leading debt help company in Scotland, we’ve already helped many people across Scotland in December enter into a Trust Deed, or the Debt Arrangement Scheme and advised on other alternative formal debt solutions including the Minimal Asset Process route to Sequestration. However, the UK debt charity Stepchange commissioned a survey and it found that 30% of people in Scotland are expected to struggle to afford Christmas. A further 31% of people said that they expect to cut back this year. 3% said that they wouldn’t celebrate Christmas at all this year.

Problem Debt Can Happen to Anyone

The cost of living crisis is continuing to take up a large proportion of income with the survey showing that as many as 12% of the respondents said they feel that they had no choice but to rely on credit this Christmas. With inflation showing no sign of easing, and with energy bills set to worsen in 2023, more people may end up with problem debt than ever before. Statistics released by Trust Deed Scotland® earlier in the year showed that over 57.4% of our customers waited over a year before they did something about their unaffordable debt, however, the survey was conducted prior to the pressures of the cost of living crisis really squeezed most households.

Tips to Help Avoid a Christmas Debt Hangover in 2023

There are many guides available to help you have a more affordable Christmas for you and your family from Money Saving Gurus such as Martin Lewis to Mrs Mummy Penny. Here are our top tips to enjoy a more frugal Christmas this year: Calculate your budget – Calculate your budget and think about what you can realistically afford to spend. Christmas is one day and you don’t want to ruin the whole of the next year for it. Don’t buy unnecessary presents – We’re all struggling right now so consider making a ‘No Unnecessary Present Pact’ (NUPP) with friends, family or colleagues or at least agree to a Secret Santa with a £5 to £10 cap on gifts. Sometimes all it takes is one person to make the first move and everyone else is grateful for the gesture. Visit charity shops – Don’t only would you be giving to good causes but you could find unwanted, or next-to-new items and save some money in the process. Buy a cheaper Christmas day meal – You don’t need to get a fresh turkey bought in. Save money buying a frozen turkey or simply choose a more cost-effective alternative such as a Steak Pie. OK, it may be more of a traditional Scottish meal for New Year’s day but you’ll save money in cooking time alone. Look out for deals – From wine to early sales, keep an eye out for supermarket and online deals. Claim any cashback that’s going from TopCashback and Quidco. Start saving for next year, now – Putting a small amount aside each month, from this month onwards may help you make Christmas 2023 more affordable, and stress-free. Many of these tips may help with short term money management, however, if you are really struggling to manage your finances, with excessive interest and charges, or if you are not meeting your minimum payments on debts like credit cards, you may need to consider what your long term options may look like.

Help With Unaffordable Debt In Scotland

You should seek help as soon as possible if you feel that you are struggling with debt. Unaffordable debt can cause stress and anxiety, especially at this time of year with many people also reporting that it gives them sleepless nights, Tailored Scottish debt advice is available from our experienced debt advisers. They’re there to help you, not judge you, so don’t worry. You don’t even need to leave it until 2023 – check your options today and see if a formal debt solution is right for you or not. You will be able to make an informed decision and should you choose to enter into a formal debt solution, there are no upfront setup fees to pay. Try our Wizard tool to get started, or call us on 0141 221 0999.  

Divorce, Separation and Debt

Posted on by Craig Stocks
Divorce and separation rates are increasing in Scotland and relationship experts warn that the divorce and separation break up curve caused by the recent Coronavirus pandemic may not have peaked yet, with the rising cost of living now also adding to post-lockdown relationship woes. With many households experiencing reduced disposable income to the rising cost of living crisis in Scotland, the likelihood of an unaffordable debt problem as a result of divorce increases as a result. Many of the people that Trust Deed Scotland help with statutory Scottish debt solutions that include the Scottish Trust Deed, or Debt Arrangement Scheme (DAS) have cited a change in their household income as a significant reason as to why they became overwhelmed by personal debt in Scotland. During the recent Coronavirus pandemic, Citizens Advice in England reported via the BBC that in September 2000, online searches for divorce were up 25% compared to the same date in the previous year. Co-Op Legal Services earlier in 2020 said that couples being forced to spend more time together during the coronavirus outbreak saw an increase in divorce applications to the organisation with a 42% rise in divorce rates after the first lockdown. While it can be hard not to let a break-up turn nasty, amicable divorce experts say separated parents must keep their contact civil for the sake of the children. Going through a separation or divorce can be stressful at any time, never mind during a worldwide pandemic and often it means that an individual’s financial situation is affected. Any joint debts that you hold between you and your partner will have ‘joint and several liability’. This means that, if your partner can’t make payment to the debt, you will need to repay the full amount. If you don’t have any joint debts you can get a ‘notice of disassociation’. This removes any financial link with your ex-partner on your credit file. To do this you need to contact one of the credit reference agencies who can remove this link.

Divorce help and advice in Scotland

As a life-changing decision, divorce isn’t easy. It can lead to loneliness, and potentially a drop in your confidence, amongst other things. Separation often means your household income will reduce dramatically, so you may be struggling to manage your household bills along with any debts you have. However, household debts are not the only monetary issues that couples must face when looking to separate. Where children are concerned this is obviously a key issue but there are other considerations as well such as the logistics of where both parties shall live, and what to do with joint rental tenancies or mortgages. And then, of course, any potential settlements. Legal aid might be available to pay towards the legal costs of divorce or dissolution. You will be assessed on the basis of how much income and savings, investments and valuables you have (not including your main home). You might also be able to get legal aid if you receive certain benefits. If you live in Scotland, you can check if you can get legal aid with the Scottish Legal Aid Board, or find out about help with court fees on the Scottish Courts and Tribunal website. Divorce Aid is an independent organisation of professionals who can provide divorce advice to anyone in the UK.

Financial abuse and divorce

Financial abuse is also known interchangeably as economic abuse and both are a form of coercive control. Financial abuse may be part of the reason why a couple divorce and like other forms of domestic abuse, it is feared that financial abuse may have increased during the extended period of lockdown. Financial abuse can be described as the control that one person holds over another economically. While financial abuse is most frequently committed by a partner – a family member or other party known to the victim can use coercive control in this way. Examples of financial abuse include:
  • Forcing the victim to take out credit in their name
  • Removing access to household/joint finances
  • Controlling employment earnings and benefit entitlement
Many victims of physical, sexual and emotional abuse are likely to also be suffering financial abuse. Coercive control extends beyond separation and financial abuse may begin, continue or escalate post-separation. This can then become a factor in returning to the abuser.

Help with unaffordable debt in Scotland

As the country continues to cope with the ongoing cost of living crisis, many will need to deal with debt. Whether you’re going through a divorce or separation, or not, Trust Deed Scotland can help you reduce the stress and anxiety caused by having unaffordable debts through these difficult times. If you need non-judgemental debt advice or information on dealing with your debts, you can view our Scottish debt solutions guide. Our experienced debt advice team can offer debt solutions that are tailored to your situation. You can also call us on 0141 221 0999 and speak to one of our debt advisers.

A Road Map to a Brighter Future

Posted on by Craig Stocks
As the country continues to report encouraging news in its fight against the Coronavirus pandemic, the Scottish Government has today launched a road map that outlines when we may start to see a return to normality, not only in our own individual lives but for employees and small business owners in sectors hardest hit by lockdown restrictions including retail, hospitality and leisure. The timing of the announcement coincides with a new campaign launched by Citizens Advice Scotland, who have this month launched a manifesto ‘Empowering people, supporting communities’ ahead of the 2021 Scottish Parliament elections scheduled for May. CAS reported that almost 2 in 5 people who have approached their network for help with multiple debts during the pandemic don’t have enough income to cover all of their essential living expenses each month. Their cross-party ‘manifesto’ asks the Scottish government and its challenging parties to consider writing off housing and council tax debts built up during the pandemic and asks for a review on fuel poverty support schemes so they are better targeted. Earlier in the year Citizens Advice statistics in England and Wales showed that over 3,500,000 people in the UK are behind on their council tax payments, with an average of £800 council tax arrears.

A route to the beginning of normal life in Scotland

Almost a year ago today, Scotland was first placed under its first national lockdown, but today the First Minister outlined some key developments in Scotland’s plan to return to a normal life.
  • During today’s briefing, Nicola Sturgeon says lockdown will start to be lifted from the beginning of April.
  • Travel restrictions in and out of Scotland are scheduled to end from 26 April, but international travel will “not be achievable” before 17 May.
  • Also on 26 April, cafes, pubs and restaurants can open until 8 pm indoors, but not serve alcohol. Outdoor drinking will be permitted until 10 pm.
  • The aim is to have the lowest level of restrictions across Scotland by the end of June – that could mean physical distancing rules remaining along with number limits and table service in hospitality.
  • Mainland Scotland has been in lockdown since 26 December last year.
  • Hairdressers will start operating again from 5 April; gyms and non-essential shops will be allowed to open on 26 April.
  • Schools will resume full time after the Easter break, which for most pupils will be mid-April.
  • From 17 May up to four people from two households can socialise indoors in a private home or public space.

Journey to a brighter future

As the country continues to cope, many will need to deal with the impact of debt. While many hundreds of people have already been helped in 2021 by Trust Deed Scotland, many thousands of individuals have been left feeling unsure about their financial future, particularly when their long term income has been left in limbo for such a long time. With hundreds of thousands of people in Scotland still furloughed as part of the job retention scheme, and unaware that help is available to them with their unaffordable debts, today’s news will mean that more people are now looking at their own personal situation and hoping that they can now take the first step towards a brighter future. If you’re struggling with debt, you can get tailored debt advice today by contacting Trust Deed Scotland on 0141 221 0999, or by completing our online form. Our experienced debt advice team can walk you through the advantages and disadvantages of all formal debt solutions in Scotland, let you understand the options open to you and finally allow you to make an informed decision on how you can plan your journey towards a brighter future.

Debt Awareness Week 2021

Posted on by Craig Stocks
Debt Awareness Week 2021 in the UK takes place between 22-28 March this year. Spearheaded by Stepchange debt charity and championed by other prominent debt charities including the National Debtline, and supported by leading Scottish debt advice companies such as Trust Deed Scotland, the annual Debt Awareness Week event serves as an opportunity for a coordinated push by all debt advisory services to work together and help people struggling with unaffordable debt. StepChange is a registered UK Charity with a head office in Leeds, Yorkshire and is funded mostly by voluntary donations from creditors, and works with over 900 partner organisations. The theme of Debt Awareness Week 2021 is all about destigmatising debt. It’s about empowering people to feel confident about asking for the help they need and easing any worries they may have about being judged or feeling ashamed or embarrassed. For many households across Scotland, unaffordable debt is an everyday unavoidable fact of life but asking for help can feel daunting, something which Trust Deed Scotland understands well. Every week, Trust Deed Scotland receives new reviews from customers who in their own words tell us that they find our experienced debt advice team to be friendly and non-judgemental and that once they’ve spoken to our advisors, that their fears of being judged, ashamed or embarrassed are lifted. A number of people say that once they do ask for help, they can then begin to sleep again at night, or that their mental health improves significantly. Recently 55% of young Scots said that they were losing sleep over debt and there are already many established links between debt and mental health. Many of the people that we speak to on a day-to-day basis say that they contacted us after a referral from a friend, family member or work colleague. This greatly pleases us because not only does it show that our customers are happy with the outcome of their advice they received and the formal debt solution put in place for them, but it shows that people are more willing to open up about their personal finances to those around them. Challenging the stigma around debt. And, as the country continues to recover from the Coronavirus pandemic, many more people are now having to deal with their debt as a consequence. The theme of Debt Awareness Week 2021 continues with the hashtag #TheFirstStep and we’ve included some recent reviews received by our customers who themselves have recently taken their own first steps in their own journey. Trust Deed Scotland recently helped set up a Protected Trust Deed for our customer Shelley, who left a review saying: “Excellent service from the start. It took me a long time to make that call about my debt. I was embarrassed and feared been judged but it was completely the opposite I was treated with respect Sharon was absolutely lovely, welcoming, and most of all understanding she helped me enormously and can not speak highly enough of her service. I would 100% recommend Trust Deed Scotland if your struggling with debt please make that call.” title underlines Gordon, another customer who has entered into a Protected Trust Deed said of his Trust Deed Scotland experience: “Vicky was immensely helpful and easy to talk to about the very delicate situation of my debt. All anxiety was lifted with such fast and helpful guidance. Will definitely refer anybody I know struggling with debt to this program. Thank you very much. It’s greatly appreciated.” title underlines Earlier in the month, Trust Deed Scotland set up a Debt Payment Programme (DPP) under the Debt Arrangement Scheme (DAS) for our customer Erin who said: “After stressing for too long over my debts and feeling really embarrassed to ask for help, Pamela from Trust deed Scotland was extremely helpful and I didn’t feel judged at all, I felt so comfortable talking with her on the phone and she made me feel so at ease with the procedure. I can now say I’m so glad I went to Trust Deed Scotland as a weight has been lifted off my shoulders!” title underlines Robert, a self-employed customer who Trust Deed Scotland helped with a Protected Trust Deed said: “This difficult decision to address my debt problems was made significantly easier by the friendly and non-judgmental advice and help from all the staff especially my main advisor Joe at Trust Deed Scotland. Within the space of a month, I had been helped through what had always appeared as a terrifying financial minefield into which I hadn’t dared step, only for it to be revealed as a solvable problem. I can only urge anyone in my previous position to grasp the nettle and let Trust Deed Scotland help you.” title underlines Angela, a customer who Trust Deed Scotland helped with a Trust Deed proposal said: “I cannot thank Soreena enough for her patience and most importantly her complete understanding of my personal circumstances. The weight and total burden seemed to be lifted almost immediately after our initial conversation which was worth its weight in gold. With ease and comfort, the process was explained fully and my understanding checked at each step of the way. My needs and my individual concerns were paramount and taken into consideration with all decisions. Nothing at all, no question, no text nor no email was ever a problem for Soreena and I was treated with dignity and respect throughout. I now look forward to a sunnier future and leaving my troubles behind me.” Angela applied for a Trust Deed alongside her husband who made an application for a DPP as part of the Debt Arrangement Scheme showing that there really is no one-size-fits-all solution for our customers, with each customer’s individual circumstances, needs and affordability being the utmost priority at all times. title underlines With over [reviews] Trust Deed Scotland reviews you can read more reviews like these, written in our customers’ own words.

Take the first step on your journey to a brighter future today

  If you are struggling with unaffordable debt and you want to find out your options, you can contact Trust Deed Scotland today on 0141 221 0999. We offer tailored debt advice. We do not judge and we’ll treat any information that you share with us confidentially so, you don’t even need to commit to taking the first step today.

20% worried about Post-Pandemic Finances

Posted on by Craig Stocks
New research published by Money Advice Trust in conjunction with YouGov* finds that 20% of the UK population, an estimated 10.2m people, worry that their post-pandemic finances will not recover from the impact of the Coronavirus pandemic. The research highlighted that a further estimated 6.2m UK adults have used credit to pay for essentials such as utility bills, food shopping and paying their council tax. Worryingly, 2.3m have taken out high-cost credit to meet basic costs, meaning that a higher number of people are likely to already be experiencing problem debt issues as a result of lending during the pandemic. 17% of UK adults have been losing sleep over their finances, rising sharply to 43% where the individual is unemployed. 25% said that their mental health has been affected. The issues of Debt and mental health have a long-established connection with one another, even before the start of lockdown restrictions. The number of people who ended up in financial difficulties changed from an estimated 14% in May 2020, to 20% in December 2020 showing a significant increase in a short period of time. Redundancy and furlough were widely cited as the most significant reason, with an income shock such as reduced hours also being reported as a significant contribution to the cause of financial difficulties. Money Advice Trust is a UK charity advice service that provides data to inform a wide range of organisations, such as the Bank of England, on what the latest trends in the debt and credit sectors are. Their research programme also provides useful stats on debt and credit. Recognisable as National Debtline and Business Debtline which together help thousands of people in the UK every year with unaffordable personal debts and small business debts. The findings are part of a new report ‘The Cost of Covid‘ which outlines the experiences of people whose finances have been most impacted by the Coronavirus pandemic.

Post-Pandemic Finances – Payment Breaks Support

The Financial Conduct Authority (FCA) has said that borrowers facing difficulties will continue to receive ‘fair and appropriate support’ after a deadline to apply for a Coronavirus related payment holiday ends on March 31 2021. However, the FCA also said that they will be monitoring ‘tailored support’ with some lenders’ showing teething problems in implementing tailored support due to what it describes as ‘staff lacking experience’. Further FCA Guidance into Tailored Support was released in January 2021.

Post-Pandemic Finances – Impact on the Self Employed

The Cost of Covid report highlights the problems affecting self-employed people in the UK also. More specifically, not everyone has been eligible for the payments, which excluded owner/directors of limited companies, those who did not make the majority of their from self-employment, those with trading profits over £50,000 and until the March budget – newly self-employed people. Money Advice Trust quotes the UK government’s own figures that show in November, approximately 1.6m self-employed individuals had been excluded due to the eligibility criteria. However, they were keen to stress that some of these people will now be eligible due to the changes in the March 2021 budget.

Help with problem debt in Scotland

Earlier this year, the Money Charity also published a report highlighting that a Post-Pandemic financial recovery plan will be required and sitting alongside the Scottish Government’s lifting of lockdown restrictions, and return to normality, Trust Deed Scotland look to offer those with unaffordable debts with a road map to a brighter future. Getting your finances back on track is a journey, no matter what stage you’re at with your debts, there is help available for you. A recent theme around the recent Debt Awareness Week event sought to address the fears and concerns that a person with problem debt in Scotland may be experiencing. One of the main focuses was to empower those in such a position to seek help and overcome those fears. For example, many people with unaffordable debt put off asking for help through fear of being judged, or that they feel embarrassed or ashamed about their situation. It’s important to understand that if you are feeling this way, that you know that you’re not alone. Having helped over [volume] people in Scotland, and with over [reviews] Trustpilot reviews, we can confidentially say that our experienced debt advisors are friendly, non-judgemental and that any information that you choose to share with us will be treated with the strictest confidence. Whether you just need some advice or you are choosing to commit to a formal debt solution, we’ll be with you every step of the way of your journey with us. Our commitment to the quality of service we provide remains our top priority throughout, from the start of your journey to the end. Everything we do is in-house – From initial advice, setup, customer service and managing your debt solution until you are finished your journey with us. You will never be passed to another company, or be outsourced abroad to a call centre once your solution is in place. Earlier this year, we released information on a road map to a brighter future. If you’d like to take the first step today, call us on 0141 221 0999 or contact Trust Deed Scotland.
*The Money Advice Trust commissioned YouGov to conduct a national, online poll to examine the impact of the Covid-19 pandemic on household finances. Total sample size was 2,023 adults. The fieldwork was undertaken between 9-10 March 2021. The figures have been weighted and are representative of all GB adults (aged 18+). Where we extrapolate national figures from this data, these are calculated by the Money Advice Trust using population estimates from the Office of National Statistics which indicate that there are 51,220,471 adults in Great Britain.

Fuel Poverty In Scotland Increasing

Posted on by Craig Stocks
Families across Scotland are having to choose between heating and eating, Energy Action Scotland reveals in a new fuel poverty awareness campaign. Energy Action Scotland was established in 1983, EAS seeks to develop and promote effective solutions to the problem of cold, damp and expensive to heat homes. Frazer Scott of the Glasgow-based charity reported to STV News that local food banks were reporting food banks asking for ‘cold packs’. Cold packs are parcels that can be eaten without the need of heat, suggesting that those families can no longer afford to oven cook or microwave meals. Frazer said “Right now, 600,000 households in Scotland live in cold and damp homes and it isn’t fair that more than 25 per cent of all Scottish households have to make choices every single day between heating or eating. More has to be done for households with all-electric homes. They on average pay £600 more than a house in Scotland which has gas and electricity to live a similar life. We need to get a balance of benefits and support in place to help lift them out of fuel poverty. Fuel poverty kills six a day in winter – that’s a disgrace” The group have been actively delivering lower-energy pressure cookers to housing associations, an incentive that can save as much as 70% off typical cooking bills, and recently teamed up with celebrity Masterchef Gary Maclean to promote a campaign to distribute more pressure cookers to those most in need. UK households are deemed to be living in fuel poverty if the home has a fuel poverty energy efficiency rating of band D or below or if, when they spend the required amount to heat their home, they are left with a residual income below the official poverty line. The official poverty line is when households’ income is 60 per cent below the median household income after housing costs for that year.

Fuel Poverty in Scotland Statistics

Fuel poverty is not a recent symptom of the financial impact of the Coronavirus pandemic, although the numbers of people affected by fuel poverty have undoubtedly grown as families struggle to make ends eat while one or both parents are unemployed, or are furloughed. A 2019 Scottish Government commissioned survey found that 613,000 households were living in fuel poverty, 311,000 of those were classified as having extreme fuel poverty. In July 2020, the UK-wide End Fuel Poverty Coalition predicted that as the numbers in fuel poverty soared, a second wave striking during colder weather could be catastrophic for individuals and health services. Earlier in 2021, the Resolution Foundation reported that many homes across the UK had fallen behind on their rent and mortgage payments. As a result of people being made redundant during the pandemic, or furloughed as part of the Job Retention Scheme, many people are falling into a cycle of debt where they are using credit to fund general living expenses, including priority bills such as council tax but with limited funds available, this often means that something needs to give. Increasing the likeliness of fuel poverty, or food poverty. Food poverty rates in the UK are amongst the highest in Europe reported the Big Issue earlier this month. Research into food poverty by the University of West Scotland found that the Coronavirus pandemic has aggregated food insecurity. Their report entitled ‘food insecurity in times of Covid-19‘ found that Food insecurity across the UK had been on the rise before the Coronavirus pandemic and that is was clear that the pandemic itself led to a further rise. Food insecurity is a wider term used to describe food poverty and varies in levels from mild food insecurity; worrying about the ability to obtain food to severe food insecurity; experiencing hunger.

Help With Unaffordable Debts in Scotland

If you’re worried about your finances and would like to take control of your unaffordable debt, you can contact Trust Deed Scotland on 0141 221 0999, or complete our Trust Deed Wizard tool for more information. As a leading provider of formal Scottish debt solutions including Trust Deeds, and the Debt Arrangement Scheme, our experienced debt advice team are able to work with you and offer tailored debt advice that puts you at the heart of the decision-making process.

Breathing Space & Statutory Moratoriums

Posted on by Craig Stocks
As the country continues to cope with the financial impact of the recent pandemic and with the rising cost of living impacting the lives of so many, a significant number of people now need to deal with the impact of problem debt all across the United Kingdom. A new ‘Breathing Space’ scheme has begun in England and Wales, aimed at helping people in problem debt from further interest and charges. Officially known as the Debt Respite Scheme, it freezes interests and charges for a period of 60 days, and halts debt collection to allow people more time to come up with a longer-term solution to their unaffordable debt. People in England & Wales can apply for the break, which lasts for up to 60 days, to prevent them from falling into a spiral of debt. The UK Treasury has estimated that up to 700,000 people could be helped by the scheme in its first year and hopes to follow up on the Debt Respite Scheme with a ‘Statutory Debt Repayment Plan in 2021, a solution that has long been spoken about, with similar characteristics to that of the Scottish Debt Arrangement Scheme (DAS) which has been in place since 2004, albeit with revisions over the years since its launch. People receiving treatment for mental health issues can get more help. The separate system for those receiving mental health crisis treatment lasts for the length of that treatment, plus another 30 days. People in Scotland with unaffordable debt in Scotland already have an equivalent to ‘Breathing Space’ known as a Statutory Moratorium, with a low and grow debt payment plan being another solution allowing those struggling with unmanageable debt as a result of a loss of income due to the pandemic, to make minimum or token payments through the Debt Arrangement Scheme (DAS) with a view to increasing them when their income returns to a normal level.

Statutory Moratorium Scotland

If you are worried that you may be at risk of Sheriff Officers taking action against you, a Statutory Moratorium (Scotland) is a legal instrument that you can use to protect yourself. Statutory Moratoriums also protect you from creditors making an application for you to be Sequestrated. The Statutory Moratorium gives you 6 weeks protection from a Sheriff Officer taking action against you, such as arresting your bank account or freezing your income. If you are worried a Sheriff Officer may freeze your bank accounts, or arrest your wages, then a Statutory Moratorium may be suitable for you. It can also stop possessions like cars, or any other valued asset item, being attached. The process is designed to allow breathing space for anyone struggling with their debts, so they can consider their options, regardless of whether those options are the Debt Arrangement Scheme, a Trust Deed or Bankruptcy (Sequestration). Essentially, a Statutory Moratorium can be used to buy you time, until the pandemic is over so that you can review your options at a later date when you have more information on your future ability to pay.  

What was the Low and Grow DAS?

The Debt Arrangement Scheme (DAS) is a formal debt solution in Scotland that has seen significant growth in the last year. Such has the growth in the use of the Debt Arrangement Scheme been in Scotland, that the number of people using the solution grew 18% in 2020 against 2019, according to official Scottish government statistics. Under existing affordability rules, the solution can only be put in place if an individual has the ability to be able to make regular repayments from their income. However, from early 2021, it was made possible for those struggling with unmanageable debt as a result of a loss of income due to the pandemic, to make minimum or token payments through DAS with a view to increasing them when their income returns to a normal level. Low and Grow Debt Payment Plans, or Low and Grow DAS as they were also referred to, were a tool rolled out to help people with unaffordable debts in Scotland during Covid times. For many Scottish residents, this helps to provide vital breathing space and a welcome opportunity to take control of household finances. UK government figures show that after the first lockdown, over 700,000 Scots had been furloughed under the UK job retention scheme, with many households struggling with debt, the newly created Low and Grow debt payment plan should give welcome relief to those who are in a position to repay their debt over a longer period of time but require a short term solution in the intermediate period before their regular income returns to normal. When a person repays their debts through DAS, interest and contractual charges are frozen. DAS lifts wage arrestments; stops court action including Sequestration (bankruptcy in Scotland) and requires one monthly payment that is distributed to all creditors on their behalf. You can find out more the advantages and disadvantages of the Debt Arrangement Scheme and alternative formal solutions such as Trust Deeds by calling Trust Deed Scotland on 0141 221 0999. Jamie Hepburn, Minister for Business, Fair Work and Skills said: “I am acutely aware of the impact that the pandemic and necessary restrictions are having on household finances. In this uncertain time, I would encourage anyone experiencing problems with debt to seek advice as soon as they can. “DAS is an enormously valuable tool to help manage problem debt and the Scottish Government has worked closely with the advice sector and other stakeholders to introduce greater flexibility in the operation of the scheme to assist those impacted by the pandemic.” Trust Deed Scotland® said: “Getting early, tailored debt advice remains crucial as the country continues to cope with the pandemic. Every day we speak to people who are feeling overwhelmed by the challenges of lockdown, homeschooling, poor mental health, caring for elderly relatives, reduced income and many are feeling overwhelmed with their debt. Many of those individuals have had a sudden change in their circumstances and are prevented from repaying their debts due to a short term inability to make repayments. That short term problem can sometimes lead to a situation where the person can never catch up and a debt solution is required. We welcome the newly created Low and Grow debt payment plan and urge people struggling with problem debt to seek debt help now.”

Debt Arrangement Scheme vs. Minimal Asset Process

Minimal Asset Process (MAP) is a route into Sequestration (bankruptcy) aimed at individuals who have no, or little assets and who also have little, or no income. DAS is not insolvency, it is the only statutory debt management plan in the UK. In order to find out which option suits an individual better, it is essential to seek advice before making a decision. Both solutions, in addition to Trust Deeds, are effective ways of formally dealing with unaffordable debts. While it’s true that many people currently furloughed, or claiming Universal Credit may loosely qualify for both, a clear understanding of your personal circumstances, assets, future ability to repay debts, and/or desire to rebuild a credit rating need to be correctly assessed. Bankruptcy has always carried the greatest stigma and many people that we’ve spoken to over the years have struggled on for years to avoid being made bankrupt but the reality is that in the right situation, the Minimal Asset Process route and Full Administration Sequestration are effective tools that have helped thousands of people rebuild their lives through the years.

Tailored Support

Tailored Support effectively replaced payment breaks, which are now closed to new applications and are scheduled to end by 31 July 2021 for those already using them. Compared to the previous payment breaks, Tailored Support is more ambiguous in its definition, it’s down to your lender to advise on what they can offer you including a (further) payment deferral a (further) period of reduced payments, waiving or reducing interest, agreeing on a repayment plan and/or refinancing your credit agreement.

Advice on your options

To find out more about managing your money and getting free advice, visit Money Advice Service, an independent service set up to help people manage their money. Trust Deed Scotland® can give you advice on Low and Grow DAS but also advice on applying for a Statutory Moratorium and our experienced team, offer debt advice that is…
  • Non-Judgemental – Our friendly, helpful team want to help find a solution that suits your needs.
  • Confidential – We do not share your details with any other companies. Your data is safe and secure.
  • Experienced – [volume] people helped and over [reviews] five-star reviews on Trustpilot.
  • Tailored – Pros and cons of all formal solutions explained.

Apply for a DAS

You can find out more about applying for a low and grow DAS by using our Trust Deed Wizard tool or by calling us on 0141 221 0999. Our experienced debt advisors provide tailored debt advice outlining the risks and benefits of the Debt Arrangement Scheme and other formal Scottish debt solutions including Protected Trust Deeds and Sequestration.

Scrap 5 Week Universal Credit Wait: Scottish Debt Charity

Posted on by Craig Stocks
Citizens Advice Scotland (CAS) has repeated a call for the abolition of the 5 week wait for new Universal Credit claims and the introduction of a non-repayable assessment period grant for everyone claiming Universal Credit to help prevent individuals in Scotland from being dragged into a problem debt cycle. The Scottish debt charity ran a survey of their clients and found that the wait for a first payment was causing stress and anxiety for those respondents to the survey. The survey was based on over 600 people who had sought universal credit advice in Scotland between March 2020 and December 2020.
  • 70% said they found the application for Universal Credit to be stressful.
  • Nearly 50% said they had to borrow or take an advance to get through the 5-week wait.
  • Among those that borrowed to get them through the 5-week waiting period until they got their first payment, 65% said they will find it difficult to repay the loan. Single people, homeless people, and people without a final wage were more likely to require loans during the 5-week wait, saddling them with debt before their UC payments have even begun.
  • Single-parent families were also more likely to borrow during the five-week wait, meaning children in those families may face significant financial hardship before the first payment.
‘Universal Credit should be a safety net, not an obstacle course’  Speaking on their findings, the Scottish debt charity’s spokesperson Nina Ballantyne advised: “CAS has long campaigned to end the five-week wait for the first payment, and today’s research shows the considerable detriment it continued to cause people throughout the pandemic. The five-week wait punishes the most vulnerable; those without savings and without family or friends to borrow from and those who are paid weekly who don’t have a final monthly salary payment to rely on. Many are also reluctant to take on additional debt.”

Pandemic Aftermath

As the country continues to recover, the Scottish debt charity further predicted that another influx of Universal Credit claims are expected when access to the Job Retention Scheme (furlough) is removed after September, and with the UK government also cutting the £20 additional payment in October these are worrying times for those most affected by redundancy and furlough due to the financial impact of the Coronavirus pandemic. From August onwards, the government will reduce their contribution from 80% in June to 60% in August & September with the employer expected to pick up at least the minimal 20% contribution, further causing anxiety for employees and employers alike, particularly in those sectors most affected both pre and post ‘freedom day.’

Getting money and debt advice in Scotland

As well as CAS, you can get impartial help with your money from Money Helper. By using the free services offered by either CAS or Money Helper, you can get guidance on a range of issues from benefits, pension and retirement and housing advice. If you are worried about your finances and in need of help with debt, the best advice is to not ignore the situation and try to deal with the debt issue as soon as you possibly can. If you’re unable to contact the people you owe money to and make your own arrangements, then you should seek advice from an experienced debt advisor in order to understand the severity of your situation, and any possible options available to help you deal with your debt. As Scotland’s leading debt solution company on Trustpilot with over [reviews] reviews, we are in a position to advise you on the advantages and disadvantages of formal debt solutions such as Trust Deeds, the Debt Arrangement Scheme (DAS) and alternatives such as Sequestration and the Minimal Asset Process route into Sequestration. Our experienced debt advisors provide tailored debt advice and every year guide many Scots towards a brighter future. Find out more about Trust Deed Scotland® today and find out more about your options by completing our Trust Deed Wizard tool, or by calling us on 0141 221 0999