Category: Money Advice

Christmas Shopping Debts

Posted on by Craig Stocks
Christmas shopping in Scotland is expected to bring in £6bn in the 6 days between the 19th and 24th of December as huge discounts are offered in an attempt to lure shrewd shoppers into stores. Over £2 million was spent on Saturday the 19th of December alone as more than 1.5 million people flooded the shops to buy Christmas presents. Following a relatively unsuccessful Black Friday last month, many big name companies have chosen to begin Christmas sales earlier than Boxing Day. Deloitte consumer business partner, Jason Gordon commented: ‘With the exception of 2008, this is the deepest pre-Christmas discount we’ve seen in the last decade.’   If you need help with your finances, Trust Deed Scotland may be able to help you get back on track. Try the Debt Solutions Wizard tool to find out What is a Trust Deed and how the careful utilisation of one could help you to write off a percentage of your debt and solve your money worries. What is a DAS? Is a DAS worth it? Debt Management Plan vs Debt Arrangement Scheme   Last year, the Saturday before Christmas, (which people have taken to calling, ‘Panic Saturday’, due to stressed shoppers trying to fulfil their last minute Christmas lists on this day), was the biggest day of the year for sales and the trend has continued for the second year running. It is suspected, sales this week will continue to skyrocket as Christmas is on a Friday this year, leaving 5 full shopping days after Panic Saturday.   Visit our info hub article for Money Saving Christmas Tips.  

Christmas Shopping Debts?

An estimated 23% more will be spent between the 19th of December and the 24th of December this year than during the same period last year when Christmas was on a Thursday. The Centre for Retail Research estimate 12.6 million people will shop in the sales across the UK in the run-up to Christmas. Deloitte’s Gordon surmised: “Whilst this is good news for consumers looking to grab a bargain, it is a clear sign that retailers are being faced with what is now an annual uphill battle.” Remember to manage your spending while Christmas shopping as one in five Scots are still paying off last Christmas. If you overdo it with your Christmas shopping debt, there is a very real fear that you could be one the wrong end of the Blue Monday blues in the following January. For information about Debt Help in Scotland call us on 0141 221 0999 or Contact Trust Deed Scotland today.

How Much Are Overdraft Fees Costing You?

Posted on by Craig Stocks

If you find yourself relying on your overdraft regularly, you are not alone but it’s important to remember that it is a form of debt and you are being charged overdraft fees for the privilege of using it. Average interest rates increased from £2 per month in 2008 to £12 by 2013 and last year it was reported that banks increased their rates further, some even tripling the previous rate.

If you need help with your finances, Trust Deed Scotland may be able to help. Try the Trust Deed Wizard now to find out more.

There are several steps you can take to see if you could save money on exorbitant overdraft charges:

Set up low balance alerts

Some banks give you the option to receive a free text alert when you are close to going into your overdraft. If you find yourself forgetting to check your balance which results in you going into your overdraft from time to time it may be a good idea to make use of this service to stop you accidentally becoming overdrawn.

 

See our testimonials for hundreds of independently verified reviews showing how we’ve helped customers get their finances back on track by entering Trust Deeds.

 

Check if your overdraft is charged monthly or daily

You may only get charged for the days you use your overdraft, so if you had a negative balance for a few days while waiting to be paid, you would only pay a fee for these days. You may, however, be charged monthly. This means that you would be billed at a flat rate for the month, whether you used the overdraft for just a few days or the entire month.

 

There are simple steps you can take to get your finances straightened out

Move direct debit dates

If you find yourself running short of cash around the same time each month and you have a direct debit due around that time, contact the company and see if you can change the date the direct debit date. This could be the difference between needing to dip into your overdraft or staying in credit.

 

There is a lot of conflicting information available about your finances. We have dispelled common myths about bad credit to help you make an informed decision.

Change your current account to one with lower interest fees

Look around at the options available to you. Your current bank may offer an account with more attractive overdraft rates or perhaps changing to another bank is your best option. Some accounts have a monthly usage charge but include no or low interest overdrafts in the cost. Depending on how much your overdraft is costing you at the moment and if you use it regularly, you may you save money by going for this type of account.

 

Average overdraft charges
Annual Overdraft Charges – click to enlarge.

 

To find out more see our Scottish Debt Help page or Contact Trust Deed Scotland for more information.

How To Tell If You’re Struggling With Spiralling Debt Problems

Posted on by Craig Stocks
“Struggling” is such a subjective term; one person’s definition of struggling could be wildly different to another’s and spiralling debt problems may depend on the individual and their ability to repay within their means.. Where one person avoids going to a restaurant for dinner because they can’t afford it, another person may avoid going to the dentist for the same reason. Which of the two will think that they’re struggling with debt – the first or the second? Both? Neither? What they say is true – the first step is admitting that you’re struggling. Trust Deed Scotland® is here to help if you’re struggling with debt in Scotland, and the first thing we can do is help you identify whether or not your debts are spiralling out of control. Here are some of the warning lights that should be flashing to let you know you that you are, in fact, struggling.

Do you panic at the thought of going out with friends?

Some people don’t like large get-togethers for a variety of reasons. If the thought of going out for a meal with your friends makes you break out in a cold sweat because of the thought of paying, that’s a big sign that your debt is getting out of control. This may be the occasional one-off where money is a little tight due to an unforeseen bill or because that’s a particularly decadent restaurant, in which case that’s probably OK. However, if this becomes a recurring incidence and you see a pattern emerging, it may be time to admit that you are struggling with spiralling debt problems and seek debt help and advice.

Do you get uncomfortable at the thought of money?

If the thought of money makes you uncomfortable, even at home, the chances are that something is going wrong. If you find yourself becoming defensive or cagey when a friend mentions money, make sure you seek independent help and advice. It could be a temporary thing, or it could be a real sign that your debts are spiralling out of control.

Do you avoid picking up the phone?

Granted that there is a chance that you may be doing this to avoid talking to an ex-partner or even your in-laws, consider the possibility that you’re really doing this to avoid talking to debt collection agencies or your credit card companies. If this is the case your ring tone should be the alarm bell telling you that you need to get independent debt advice, and you need to get it now to avoid spiralling debt problems worsening.

Do you have unpaid bills from last month?

What about the month before? If your bills are piling up faster than you can pay them off, this means that you have more money going out than you have coming in. This is not a good position to be in, and the sooner you address this, the better, as you can avoid incurring interest on your debts with the right help and advice. Remember, debt is a problem which most of us face at one point or another – you don’t have to struggle alone.

Do your credit cards have high balances or savings with low balances?

If your credit cards have persistently high balances, your creditors may take this as a sign that you have uncontrollable debt. This may even affect your credit rating, even if you aren’t in debt. On the flip side, if your savings accounts have persistently low balances and you aren’t putting any money away at the end of each month, the chances are that there’s either a problem or that you aren’t managing your finances efficiently. If you think that you have a problem with your spending, make sure you seek independent advice as soon as possible.

Do you know how much money you owe?

This is a very simple test. How much money do you owe? If you don’t know, you have a debt problem. If you answered “only a couple thousand,” you have a very real debt problem. How much is a couple thousand? Is that £2,000 or £20,000? If you don’t even have a rough idea, that’s not a good enough answer. If any of your answers were yes, with the exception of that last question, you should sit down and consider your level of debt. Put your optimism to one side for a moment, and look at your situation as objectively as possible. If your brother, sister or best friend was in the position you’re in, would you tell them to seek independent, expert help and advice? If you think that your debt problems are spiralling out of hand, wherever you live in Scotland, make sure you seek Scottish debt help, or use our debt repayment calculator tool.