Category: Types of Debt

What Is A Debt Payment Programme in Scotland?

Posted on by Craig Stocks
A Debt Payment Programme in Scotland (DPP) is the term used to describe how much you pay back to your debts each month as part of a Debt Arrangement Scheme (DAS). DAS is a statutory debt management plan, introduced by the Scottish Government in 2004 to help individuals repay their debts in full. If you need a helping hand to get out of debt, DAS could be a suitable option for you. Also referred to as a Debt Payment Plan, a DPP is essentially a financially means-tested method of managing your debts at an affordable level. As well as individuals, the Debt Arrangement Scheme offers self-employed debt help to sole traders, partnerships, certain limited partnerships, trusts,  unincorporated businesses, certain categories of charities and certain corporate bodies are all eligible for the Debt Arrangement Scheme. Only a DAS-approved money advisor can arrange this on your behalf, however once arranged – it offers you a chance to restructure your unaffordable debts at a level that you are comfortable repaying each month. If you believe you fall into the category of a business rather than an individual for DAS you have to seek advice from a qualified insolvency practitioner. Once approved, the DPP offers legal protection against creditor enforcement action and freezes interest and charges. A Debt Payment Programme will protect your home and car. Only available to residents of Scotland, a Debt Arrangement Scheme – is a popular alternative to a Protected Trust Deed and Sequestration. Note, in England, Wales and Northern Ireland – there is no equivalent solution that offers the same statutory legal protection, the nearest equivalent is more widely referred to as a Debt Management Plan. A DMP is a voluntary arrangement between the individual and creditor basis only. When considering the Pros and Cons of a Debt Arrangement Scheme, a qualified debt expert should go over all your income, outgoings, debts and other pertinent information to work out what options are open to you.  

What Debts Can Be Included In My Debt Payment Programme?

  Very similar to the Protected Trust Deed, you can include most types of unsecured debts in your Debt Payment Programme. ✓ Credit Cards ✓ Store Cards ✓ Personal Loans ✓ Bank Overdrafts ✓ Payday Loans ✓ Council Tax Arrears ✓ Utility Bill Arrears ✓ Shopping Catalogues ✓ Credit Unions ✓ HMRC In a Debt Arrangement Scheme, this can further include some secured debts ✓ Mortgage, Rent + Car Finance arrears. Optional – Missed payments only, terms and conditions apply – contact us for details. Debts than cannot be included are typically Student Loans, Court Fines and CSA/Child Maintenance Arrears.  

DPP Proposal

  If DAS is appropriate for your circumstances, the money adviser will calculate an affordable monthly repayment amount and decide how long the plan should last. The adviser then makes a formal proposal to your creditors, who must either accept or reject within 21 days. If the creditors don’t respond to the DPP Proposal, it’s assumed that they agree with the terms. If a creditor doesn’t approve the DPP proposal, the plan can be put through if the money adviser believes it to be fair and reasonable under the terms of the Debt Arrangement Scheme. Once the DPP Proposal has been accepted, the interest and additional charges on your debts will be frozen as long as you abide by the DPP terms.  

Advantages of a DPP

 
  • A DPP lets you repay your unaffordable debts at a more reasonable rate, while still leaving you enough money for living costs and household bills
  • All interest or charges that are being applied to your debts will be frozen at the point when you apply for your DPP
  • Your creditors can’t contact you or take any further legal action against you
  • If your situation changes you can apply to vary your payment or apply for a payment break, although the term of the break will be added to the DPP
  • When your DPP is complete, your unsecured debts will be paid in full
  • Once your DPP becomes approved then by law any earnings arrestments currently in force have to be cancelled. Your continuing money adviser will ensure that this happens for you.
 

Disadvantages of a DPP

 
  • Unlike a Trust Deed which typically lasts a period of 48 months, the DPP lasts until the full debt is written off. Therefore, there is no unaffordable debt written off, other than frozen interest and charges
  • Once you’re on a DPP your details will be put onto the DAS register. This is an online register that your creditors can access
  • A DPP will appear on your credit file for six years
  • If you don’t keep up your payments the DPP could fail, and creditors can add interest charges, or take further action against you
 

How Can I Apply For A DPP?

  You can apply for a Deb Payment Programme under the Debt Arrangement Scheme today with Trust Deed Scotland®. There are no setup fees for a Debt Payment Programme and the cost of administering the DPP are borne by the creditors. More information available here. There are a variety of debt solutions available in Scotland to help deal with your debts. You can find out more about the solutions above or you can visit our debt advice in Scotland page. Give us a call on 01412210999 to find out more.

Debt Advice Charity Reports Covid-19 Income & Debt Concerns

Posted on by Craig Stocks
Over 40% of people in Scotland are concerned about income during the Coronavirus lockdown, Citizens Advice Scotland reported. Of those worried about their finances, the money and debt advice charity said that 31% of its respondents said they were concerned about utility bills, rent and debt repayments. In addition, 27% are concerned about mortgage repayments and the same number are concerned about paying for food and other essentials. 29% say they worry about paying council tax.

Debt Advice Charity Concerns

Citizens Advice Scotland, who ran a survey on the subject said the concerns around income show the extent of financial uncertainty people continues to feel during the outbreak. Myles Fitt, the Financial Health spokesperson for the Scottish debt advice charity, speaking on the issue advised: “What advisers across the Citizens Advice network were seeing before Covid-19 was the issue of people struggling to pay for key bills as a result of a lack of income in the first place. With over 40% of people in our survey concerned about their income, there is a real risk the pandemic makes this a more serious issue for a larger group of people. Both the Scottish and UK governments, as well as industry regulators, have taken significant steps to ease the short term pressure on people meeting the costs of daily living. Our message to people is that support is there and to access the support you are entitled to. Across the country, the Citizens Advice network has adapted to these changed circumstances, with CABs across the country still delivering advice in these challenging times, either on the phone or electronically by local advisers.” Trust Deed Scotland®, the leading debt advice company in Scotland further advised: “Many people in Scotland are now aware that lenders and companies ranging from mortgage lenders, credit card companies to car finance and guarantor loan companies are offering payment breaks but the message is being lost in translation that individuals need to contact their lender and request the payment break. The lender simply will not offer this without being prompted. Now with it being the first day in May, traditionally the first of a month is the day most people have a direct debit or standing order set up, those who have cancelled without informing their lender may start to see further charges being added to their debts and that will potentially also have a negative impact on their credit ratings as their account will show missing transactions rather than those authorised by the lenders. This is also potentially the first payday date for some people laterly furloughed after the outbreak began. We’re concerned that these issues come cause issues further down the line when the post-Coronavirus recession hits. We repeat our previous advice that if you’re struggling with debts due to your income being reduced as a result of the Covid-19 outbreak, seek payment breaks wherever you can and get it confirmed by the lender by email, or in writing.”

UK’s Personal Debt Shrank In March

It’s not all bad news, fortunately. Personal debt totals have indeed shrunk in the month of March, it has been confirmed. The amount of debt held on credit cards was lower than the same month the year before for the first time since it began recording the data in 2008, the Bank of England reported. Households in the UK paid back a staggering £3.8billion more debt than they borrowed in March 2020, the biggest figure on record, as households shunned credit cards in the face of the Coronavirus crisis. Credit card debt reduced by £2.4bn in a month to £69.3bn, for only the second time since July 2013. Therefore, the amount UK consumers have outstanding on credit cards has fallen, according to the Bank of England figures. As written about recently by Trust Deed Scotland®, many households across Scotland have saved money during the Coronavirus lockdown in Scotland by adopting careful household budgeting techniques.

Debt Advice in Scotland

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

You may be finding it difficult to cope already and with the current Covid-19 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 reach a brighter future. For qualified, expert coronavirus debt advice in Scotland, give us a call on 0141 221 0999 or complete our Trust Deed Wizard®. 

Joint Debts In Scotland

Posted on by Craig Stocks
There are different types of joint debts in Scotland and there is often no one-size-fits-all rule when it comes to credit facilities. From unaffordable loans, credit agreements and bank accounts to mortgages and shared bills such as utility bills – understanding joint debts in Scotland can be quite complex to some. If you’ve been left with joint debts to pay and they’ve become unaffordable, Trust Deed Scotland® can help you with expert debt advice to help you manage the situation and take control of your own financial future. Joint and several liabilities can also apply to other debts, including household bills such as council tax.

If I Marry, Will My Spouse Become Liable For My Debts?

No. You will remain responsible for any unsecured debts that you have taken out in your own name, before during or after marriage. It’s a common assumption that once you join hand-in-hand in marriage or civil partnership, that your debts then becomes a joint debt. This isn’t always true. Unless you signed the agreement together of course.

If I Divorce, Does Liability Become Joint?

You will be responsible to repay 100% of any debts in your own name. If there are any debts that you enter into under a joint arrangement, at that point both parties are equally liable for the full debt amount. This is written into most, if not all, financial agreements and the term is known as ‘joint and several liability’. Where possible, it is always best to come to a fair agreement with the other person in the divorce. Simply ignoring it probably won’t work unless the other person takes full responsibility. However, this is typically unlikely and will inevitably cause more stress in the long term. In practical terms, this isn’t always possible as many relationships tend to end on bad terms.

Debt Collectors Are Chasing Me, What Are My Options?

Trust Deed Scotland advise that f you are being harassed over a debt that was accrued by an ex-partner’s, firstly ask for the original contract. If it doesn’t contain your signature or you don’t recognise the agreement, it may mean you have been a target of fraud by your ex. Either way, it’s a good idea to seek legal advice. If you have correspondence such as emails, text messages, or letters from your ex-partner that admit they owe you money it may be possible to take further action via the small claims court. However, if you do accept that there is a joint liability for the debt, with incontrovertible evidence to that end, you should seek immediate debt advice. Reporting credit fraud against an ex-partner can be difficult to do for several reasons. For example, if this was an abusive relationship, you may worry that reporting your ex-partner to the police could result in repercussions against you. If this is the case in your situation, you can speak to your creditor in confidence, as they may have processes in place to help people deal with debt from relationships that end badly or that have a history of abuse.

What Is Financial Abuse?

Financial abuse is a form of domestic abuse. It is a crime and should be reported to the police. Often the abuse is perpetrated by a partner, but it can also come from other relationships, such as friends, family members and carers. Learn more about protecting yourself against financial abuse. Financial abuse in the home – whether or not it’s accompanied by aggression or physical violence – can leave you feeling isolated, lacking in confidence and trapped. You should know that taking the first steps towards reporting financial abuse against you is incredibly brave. Just like seeking debt advice, it may seem scary but you don’t have to do it alone. Financial Abuse Further Resources: What is Financial Abuse? Women’s Aid Respect – Men’s Advice Line LGBT Anti-Violence Charity

What Happens To Joint Debts When Either Person Dies?

  If you have any joint debts with a spouse or any other party who have died, the debt will become your sole responsibility. This is true if you were a guarantor for a debt owed by the deceased. When someone dies, their debts become a liability on their estate. The executor of the estate, or the administrator if no will has been left, is responsible for paying any outstanding debts from the estate. When the debt is not in joint names, if there is insufficient money or assets in the estate to pay off all the outstanding debts, then the debts would be paid in priority order until the money or assets run out. Any remaining debts are likely to be written off. Surviving relatives will not usually be responsible for paying off any outstanding debts for the deceased unless they acted as a guarantor or it was a joint debt.

Are Guarantor Loans A Good Idea?

In our experience, the answer is usually No. Guarantor loans are risky and you should only ever accept the role of being a guarantor if you feel that you can pay the debt on the borrowersbehalf. If you have been considering applying for a guarantor loan to consolidate your debts. Many loans providers are under increased scrutiny due to irresponsible lending. If you’re struggling with a guarantor loan due to Coronavirus, you may be eligible to apply for a guarantor loan payment break. From borrowers, complaints to the Financial Ombudsman Service have included:
  • I shouldn’t have been given the loan because I couldn’t afford it and the lender should have known this at the time
  • My financial circumstances have changed and I can no longer afford to make the repayments to my loan but the lender isn’t treating me fairly
  •  didn’t apply for the loan
  • The lender won’t let me include this loan in a Trust Deed or Debt Arrangement Scheme
  • I’m having problems with my credit file because of the loan
  • My guarantor has been contacted too quickly
From guarantors, complaints to the Financial Ombudsman Service have included:
  • I didn’t agree to be a guarantor
  • I was pressured or forced into being a guarantor
  • It wasn’t properly explained that being a guarantor meant I had to make the payments if the borrower didn’t
  • The lender should never have accepted me as a guarantor because I couldn’t afford to make the payments
  • The lender should never have given the loan to the borrower in the first place
  • My circumstances have changed and I can no longer afford to make the payments
  • The lender is threatening to take me to court
  • The lender is repeatedly contacting me for payment
 

Do My Credit Card Debts Have Joint Liability?

Credit card agreements always have a primary cardholder who is responsible for repaying all debts that occurred as a result of the use of that card, even if they come from an additional authorised cardholder. Even if the card was used to purchase household items or a car used by the other partner for example; ownership of that debt lies solely with the primary cardholder.

Can I Hide My Debts From My Partner?

It’s actually quite common for people to successfully complete a whole Trust Deed term of 48 months or finish their Debt Arrangement Scheme without ever telling their partner about their debt issues. Although Trust Deed Scotland® would usually advise against hiding debt from your partner for many reasons.

Can We Get A Joint Trust Deed?

  Joint Trust Deeds don’t exist as such, however, both parties can have separate, individual Trust Deeds. Either party is free to have their Trust Deed managed by separate firms, though it could be argued that it is more advantageous to work with the same adviser as you will both most likely share bills and expenses. Trust Deed Scotland® always recommend speaking to an expert debt advisor as they will be able to explain your options and provide you with a personalised illustration based on your own circumstances and then your partners also, depending on the situation presented. When an individual enters a Trust Deed they would typically have £5,000 of unaffordable, unsecured debt. This debt ratio would therefore need to be maintained in order for both parties to be considered for their individual Trust Deed. It may also be an option that you or your partner qualify for a Trust Deed and/or the other qualify instead for a Debt Arrangement Scheme.

Can We Get A Joint Debt Arrangement Scheme?

Yes. If both you and your partner have unaffordable debts, you may apply for a joint Debt Arrangement Scheme, as long as you both have enough qualifying debt and for a joint DPP proposal to proceed, both applicants must consent to the DPP proposal. Couples who have at least one debt for which they are jointly liable may apply for a joint DPP if their relationship falls within the following criteria:
  • Husband and wife or living together as husband and wife
  • Civil partners
  • Living together in a relationship with the characteristics of a husband and wife relationship, except that they are of the same sex.
It may also be an option that you or your partner qualify for a Debt Arrangement Scheme and/or the other qualify instead for a Trust Deed.

When To Seek Debt Advice Over Joint Debts?

If you think you, your partner, or both of you have an unaffordable debt problem – seek qualified expert debt advice today. If you do something about your debt today, you don’t need to worry about it tomorrow. Reputable debt advice companies such as Trust Deed Scotland® and debt charities are regulated, this should help ensure that neither you or your partner are ‘sold’ into a debt solution and that you are both fully aware of the pros, cons, and alternatives. Call us on 0141 221 0999 or try our Trust Deed Wizard® to get started now.

Buy Now, Debt Later – Interest-Free Credit Warning

Posted on by Craig Stocks
Thanks to a rise in the advertising of Buy Now, Pay Later Loans and cross-platform social media promotion by ‘Social Media Influencers’, the steady rise of interest-free, buy now, pay later lending is set to continue, creating problems for residents of Scotland with Buy Now, Pay Later Loans Debt. It’s a worrying recent trend that can result in several thousand pounds of debt and all within the reach of a few clicks. Those most at risk are the so-called Millennial generation. Under 35s. Many of these consumers are students, or work part time with relatively low incomes. Many of the brands that are heavily invested in the promotion of buy now, pay later models of payment include the likes of Boohoo, ASOS, Superdry and JD Sports. Brands which traditionally target younger shoppers. Popular TV programmes including the likes of Love Island are awash with wannabe celebrities using their newly found fame to endorse Buy Now, Pay Later lenders and the brands that they represent. In what is known as a debt spiral, people can make themselves overdrawn, or borrow additional funds on an existing credit card. Many will even use payday loans to pay off their initial buy now, pay later debts and then the robbing Peter, to pay Paul chain can escalate very quickly.

Buy Now, Debt Later Loans Warning

Trust Deed Scotland said “The key point for anyone considering buy now, pay later loans is that if you think that you can’t afford the purchase today. What’s going to change in 60, 90, 365 days’ time?” “Inexperienced twentysomes are most at risk as traditionally they are a group who are the least capable of being able to budget effectively. What’s more, the casual nature of the wording and minimal information lulls younger people into a false sense of security and preys upon their experiences as a result. Many store card lenders had been slow to adopt their own responsible lending procedures over the years and now we have a situation where a shop can switch its preference from store card lending to the buy now, pay later model with all the benefits of increased sales and yet fewer of the negative connotations attached to a traditional store card.” Students are one group of individuals likely to underestimate the impact that BNPL lending may have on their Student Finances.

Who Are The Buy Now, Pay Later Vendors?

Perhaps the most well-known is Klarna, with an ominous 6 million UK customers. The Sweden-based company have become the cool and trendy face of two click purchases on retailer websites offering anything from high street clothing brands to designer furniture brands.  Nearly 60% of Klarna’s customers are under the age of 35. Klarna is funded by venture capitalists and has celebrity backers including Snoop Dog. Laybuy, is a New Zealand company launched in 2018 who refer customers to credit agencies after 30 days and then ClearPay, an Australian company with 500,000 customers. The BBC reported that the owner of the New Zealand-created firm intends to move to the UK in order to capitalise on a buoyant model here in the UK.

New Legislation on Buy Now, Pay Later Set by UK Regulatory Body

A UK regulatory body recently introduced new rules to help regulate the BNPL industry and save money for consumers. The new rules introduced in November 2019 mean that: Firms cannot charge backdated interest on amounts of money that have been repaid by the consumer during the Buy Now, Pay Later offer period. Firms must provide better information to consumers about Buy Now, Pay Later offers. The information should be more balanced and appropriately reflect the risks as well as the benefits of the product. Firms must give prompts to consumers, to remind them when the offer period is about to end, so that consumers are more likely to repay the credit before they incur interest.

Buy Now, Debt Later – What Next?

  At Trust Deed Scotland, we often say to our customers that if they do something about their debts today, they don’t need to worry about them tomorrow. Unlike buy now, pay later schemes – The sentiments are completely different. Having helped over [volume] people with financial difficulties in Scotland, we’ve spoken to individuals from all areas of the country, with differing reasons for why they found themselves with unmanageable debts. Buy now, pay later may be a way of potentially building up unaffordable debt in Scotland, but it is not an unfamiliar story and over the years we have successfully navigated thousands of people towards a brighter future. If you feel that you’ve built up unmanageable debts due to any type of lending, from credit cards and bank loans, to buy now pay later schemes, the best advice we can offer you is to seek help immediately. Call us on 0141 221 0999 or try our Trust Deed Wizard to find out if you could qualify for the Debt Arrangement Scheme, a Trust Deed and any other alternative solutions.

How long does a Trust Deed last in Scotland

Posted on by Craig Stocks

How long does a Trust Deed last in Scotland?

Trust Deeds offer a way out of unaffordable debt and the chance to rebuild your credit once the Trust Deed term has ended. The Trust Deed is a debt solution that’s only available to residents of Scotland and typically lasts for 48 months although there are some factors that can affect the length of time that a person would be in a Trust Deed. One of the major factors in the length of your Trust Deed is whether or not you own your own property. Many individuals have concerns that their house might have to be sold when they enter a Trust Deed, but this is not automatically true, as the outcome largely depends on the level of equity available in the property. A popular alternative to a Protected Trust Deed in Scotland is known as the Debt Arrangement Scheme (DAS) which offers much of the same protection that a Trust Deed does, but without the ‘debt write off’ aspect. However, depending on the total debt you have, and your ability to repay – it is possible that you could repay your debt back quicker than the time it would take you to repay your debts using a Trust Deed.

Using property as part of a Trust Deed

When considering how long does a Trust Deed last in Scotland – If your home is mortgaged, the equity figure will be the property’s value minus the amount needed to repay the mortgage. There is minimal benefit for the Trust Deed administrator to use the property as part of a settlement if the equity is minimal. Similarly, should you decide to sell your home, you may be able to end the Trust Deed earlier than the initial 48 months if your creditors are repaid in full plus interest and all the Trust Deed costs have been covered.

Where a Trust Teed lasts longer than four years

A Trust Deed can last longer than the standard term of 48 months in certain circumstances:
  • If the Trustee negotiates low monthly payments in comparison with your overall debt, it may then be necessary to extend the Trust Deed term so that creditors will be more likely to approve the arrangement.
  • Some other Trust Deed companies charge excessive fees when arranging Trust Deeds, which results in a longer-term than forty-eight months.
  • If you were to inherit money or receive a windfall during the term of your Trust Deed, it’s likely that the Trustee will either increase your repayments or extend the Trust Deed term to provide your creditors with a higher return.
  • There is also a possibility that your personal circumstances could change during the initial 48-month term. Redundancy, or being unable to work due to ill health is two examples. In these cases, your Trustee may allow you to take a payment ‘holiday’ but extend the term at the end of the Trust Deed.
It’s important to take care when approaching Trust Deed companies to ensure they are reputable – in particular, be wary of excessive Trust Deed fees that might result in a needlessly extended term. Trust Deed Scotland has gathered over [reviews] five star Trust Deed reviews on Trustpilot. A signal that we are a Trust Deed provider that can be trusted to give you the correct advice.

What happens at the end of a Protected Trust Deed?

  At the end of your Trust Deed term, any debts remaining are written off, and your details are removed from the Trust Deed register within three months. You’ll also receive a certificate of completion from your Trustee to confirm that you’ve met your obligations. Where your credit file is concerned, it typically will be amended to show that the Trust Deed has been successfully completed. It will be difficult to obtain credit or other borrowing for several years after the Trust Deed. Approximately how long after a Trust Deed could you get a mortgage? This largely depends on the lender, but it’s likely that you’ll pay a higher interest rate than a ‘standard’ mortgage if you’re successful with an application. Trust Deed Scotland® has extensive experience of negotiating trust deeds on behalf of our clients and can provide reliable and comprehensive trust deed information. The length of a trust deed is an important aspect of the arrangement, as it determines when you can start to rebuild your financial life. Call one of our debt advice experts to find out more about your options.

Is a Trust Deed a good idea?

Trust Deeds can be a valuable aid to help you manage unaffordable debts and look forward to a lift after debt. However, they are not right for everybody and there may be more suitable debt management solutions for you. You can call us on 0141 221 0999 for confidential advice tailored to your needs. Our non-judgemental and experienced debt advisers have helped over [volume] people and that advice includes all other debt management techniques in Scotland.

Trust Deed alternatives?

There are alternatives such as the Debt Arrangement Scheme. Minimal Asset Process and Sequestration. The solutions offered to you will depend on your affordability and your situation. Every person’s situation is unique and therefore the options open to them will vary from case to case.  You may find that when you ask the question of how long a Trust Deed lasts in Scotland, how long it will take you to become debt-free if you pursued these other options.

Where else can I get money advice in Scotland?

To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.

Council Tax Reduction Tool Launched

Posted on by Craig Stocks
A new council tax reduction tool has been launched in Scotland that can save people thousands, Trust Deed Scotland has learned. In 2019, Citizens Advice Scotland helped 2,250 people struggling with their Scottish council tax debts averaging over £3,000 and have launched a new campaign designed to help people check their council tax exemptions, reductions, discounts and claim back monies already paid to council tax authorities in Scotland.

Check to Save Campaign?

Myles Fitt, representing Citizens Advice Scotland advised: “Over recent years, council tax debt has grown to be the number one debt issue that people bring to Citizens Advice Bureaux. People coming to us for help last year owed a total of £6.9m to their local authorities. That works out to around £3000 per person on average, three times the average council tax bill in Scotland. The campaign we are launching today is all about helping people who find themselves in council tax debt or who are struggling to pay their council tax bill. Across the country, most councils are set to increase council tax rates. We think local authorities should be do everything they can to ensure more people access these savings to help those least able to pay higher council tax bills. We know that over 80,000 fewer people in Scotland are claiming council tax reduction than when the system was introduced seven years ago, and we fear that lots of families are missing out on savings they are entitled to.”

Council Tax Reduction Calculator?

Trust Deed Scotland, who have helped over 20,000 people in Scotland experiencing financial difficulties by providing expert debt advice, welcome the introduction of the council tax reduction calculator tool available here and support the CAS Check to Save campaign. Council Tax Reduction Tool Last year, Citizen Advice Scotland saved people an average of £380 on their council tax bill, so whether you’re struggling to pay your council tax bill or not, it’s worthwhile as you can easily find out if you’re eligible to claim a council tax discount in Scotland. CAS reported that the number of people claiming council tax reduction has fallen by 80,000 since the new council tax scheme was introduced in 2013. The new council tax reduction campaign from Citizen Advice Scotland has come at just the right time, with local council authorities in Glasgow voting to increase council tax by 4.64% and their counterparts in Edinburgh voting to increase council tax by 4.79%.

Council Tax Arrears Debt?

As the No.1 debt advice company in Scotland, Trust Deed Scotland has helped many individuals to reduce their overall monthly debt repayments using Protected Trust Deeds and the Debt Arrangement Scheme which can cover council tax arrears debt. If you are struggling to repay multiple debts to a variety of creditors, Trust Deed Scotland recommends that you treat council tax debt as a priority debt with equal importance to your Mortgage or Rent and utility bills. If you are feeling that your council tax has become unaffordable due to an overcommitment on credit card debts and other unsecured debts, it is advisable to seek help from a debt charity such as Citizen Advice Scotland. Alternatively, you can find out about managing your money and getting free advice by visiting Money Advice Service, an independent service set up to help people manage their money.

Appeal Your Council Tax Band?

You can appeal your council tax band by visiting the Scottish Assessors Association website and making a proposal online to appeal your council tax. Money Saving Expert also launched a guide showing that challenging your council tax band can be advantageous, and result in you being refunded backdated money, therefore it’s a worthwhile exercise.

Get Council Tax Debt Help Today?

You can also get qualified debt advice today from Trust Deed Scotland. Use our Debt Calculator Tool to find out what your options are, or give us a call on 0141 221 0999. Our specialist debt advisors can help provide a personalised illustration of which debt management options you may qualify for and provide unbiased information on the Pros, Cons and alternatives to your potential debt solutions. As the leading debt relief company in the UK, we’ve gathered thousands of independent debt advice reviews on TrustPilot, where over 98.6% of reviewers have given us a good, or excellent rating. In their own words, our clients speak about their situation before, during and after seeking help. One of the most consistent answers we hear from our clients is “I wish I had done something sooner” which resonates with our own Trust Deed awareness radio campaign where we say “If you do something about your debts today, you can stop worrying about them tomorrow.”

Can I Have A Mobile Phone Contract On A Trust Deed?

Posted on by Craig Stocks

Can I Have A Mobile Phone Contract In A Trust Deed?

It’s a question many people ask Trust Deed Scotland when they are considering entering a Trust Deed or alternative debt management solutions in Scotland. A question that can stop some of those individuals from applying for a Trust Deed due to a fear of the unknown. The short answer is yes, yes you can have a mobile phone contract while you’re in a Trust Deed. A mobile phone is an expenditure that is approved in almost all cases if the contractual amounts are reasonable. It’s often a question of affordability and helping to ensure that you can afford to make regular contributions during the term of your Trust Deed.

Shopping Around While In a Debt Solution?

You can shop around for a new mobile phone contract while in a Trust Deed and even complete the whole application online if you are worried about being rejected for a new mobile phone contract in person. Consider comparison sites such as Carphone Warehouse or providers such as GiffGaff. You can also apply online using the mobile phone provider’s direct websites – EE, Three, O2, iD, Vodafone and depending on your current television package, you may also consider Sky Mobile or Virgin Mobile. Tesco Mobile is another mobile phone contract that you can consider. When considering which mobile network, plan, and handset you should consider how much you would typically call and send text messages and how much data you typically use. For example, do you utilise Wi-Fi in your home, place of work or for example. Travel companies such as Scotrail and First Bus tend to offer limited Wi-Fi services on their vehicles, which can reduce your data consumption while commuting and lower your average monthly data requirement. Most supermarkets, bars, coffee shops and retail shops offer their customers Wi-Fi too. When connected to Wi-Fi, you can use free app services such as WhatsApp and Telegram to send your family and friends text messages or make calls to other mobile users and they offer a realistic alternative to picture messaging. You can make calls to other mobiles using Facebook Messenger, Skype and a variety of other apps. NOTE: If you do change from using your mobile data to Wi-Fi, you should always seek permission first with the bill payer and be wary of any surplus data charges from your broadband provider.

Contract vs Pay As You Go Mobile?

A mobile phone contract may not always be the best solution for you. Pay as you go, can be just as effective while in a Trust Deed, depending on your mobile phone needs.  Here’s why: 1. Cheaper Monthly Cost If you consider a pay as you go arrangement while in a Trust Deed, you have the immediate advantage of not needing to pay the cost of buying the handset. It’s often marketed that the handset is free when you sign a new 12-24 month mobile phone contract, but the truth is that you cover the cost of the handset over the fixed term of the contract. The newer, more expensive mobile phone handsets incur a higher monthly cost and you will then pay more on a monthly basis therein. In what’s referred to as an upsell with payments broken down into small increments to make them sound insignificant, an extra payment of £10 per month over 24 months to flip your new devices storage space from 32gb to 64gb will cost you £240 over 2 years. Upgrading from a standard colour to the latest in-trend colour can cost you an extra £5p/m – £120 over two years – is the newest colour really worth that extra cost, especially since most people nowadays buy a protective cover that obscures the handset’s colour. 2. No Overpayments Consider charges that you may incur outside of your contract plan. Data, calls, picture messaging. These charges all add up. With pay as you go, you set the budget and never need to worry about a sudden increase. 3. Greater Flexibility Mobile phone contracts typically incur early cancelation charges and often do not allow you to carry over surplus data, minutes or texts. Therefore, if you’re paying for 4gb data but only using 2gb per month; you’re still paying for 4gb regardless. You can buy more data, more minutes and more text as add-ons; but this will increase the cost of your mobile phone whilst in your Trust Deed. 4. More Freedom With a PAYG mobile while in a Trust Deed, you have the freedom to move providers whenever it suits you.  Therefore, if you want to move from EE to Vodafone, you can do this easily.

Can I Add My Old Mobile Phone Debt To My Trust Deed Or DAS?

Yes. If you don’t intend to use that same device as your current mobile phone. You can usually add old mobile phone bills debt to your list of creditors, but if you want to add this to your Trust Deed or Debt Arrangement Scheme, you need to ensure that the contract has already been canceled and expect that any early cancelation fees will also be added to your debt with the provider and will increase your total level of debt.  You cannot add mobile phone arrears to the plan and expect to be able to still use the device(s). The same provider is then unlikely to offer you a new contract while in your Trust Deed.

Trust Deed Scotland Are Here To Help!

If you’re struggling with your debts and you’re finding that having a mobile phone is an expense too far, Trust Deed Scotland can help by giving you personalised debt advice. Their qualified debt advisors give confidential, non-judgmental advice on the pros and cons of any debt solution that you may qualify for. Having advised over 20,000 people in Scotland and with having collected thousands of five-star reviews, Trust Deed Scotland always have their clients’ best interests at heart. Call 0141 221 0999 for advice or find out what your options are by completing the Trust Deed Wizard online.

Coronavirus Online Gambling Debt Warning

Posted on by Craig Stocks
When the fun stops. Stop. Well done you. You’ve stuck to the rules of self-isolation, leaving the house only for permitted reasons. You have cleaned the house from top-to-bottom, called your friend that you’ve been meaning to call for ages and you’ve watched your favourite boxsets from season 1 to season 8 all week long. You’ve been keen to avoid retail therapy since most shops are delivering essential goods only but boredom may be starting to creep in, it’s only natural. Now you’ve received an email, or seen an ad online offering you a welcome bonus for an online casino. Free spins on the roulette. Virtual horse racing with £100 free bets. Where’s the harm in signing up and killing some time while you wait for the latest episode of EastEnders or Coronation Street to start! If you’re used to a flutter in sports betting shops, or online – chances are you are familiar with the ‘When the fun stops. stop’ slogan created as part of the campaign created by the Senet Group, to promote responsible gambling standards. The key messages of the When The Fun Stops campaign. Set your limits at the start Only bet what you can afford Never chase your losses Don’t bet if you’re getting angry Never put betting before your mates

Gambling Debt Warning

Could you end up with Gambling Debts? Gamblers could struggle during the Coronavirus crisis as isolation leads them into addiction and debt, The NHS Northern Gambling Service has reported. Matthew Gaskell is a Consultant Psychologist and Clinical Lead for addiction services with the Leeds & York Partnership Foundation Trust and speaking to the BBC on the potential dangers of an increase in online gambling debts and addiction during the Covid-19 crisis, he advised: “There are a range of risk factors in place at the moment: social isolation, boredom, stress, financial and job insecurity and the opportunity to gamble online. “While a lot of sports betting has stopped, we are expecting a rise in referrals further down the line. It takes time for gambling harm to spread across someone’s life and for them to realise they have a problem. “We are concerned that the next wave of gambling addiction will happen under these circumstances and that customers are not being adequately protected.” The Guardian further reported that online gambling websites had seen increased online casino activity during the Coronavirus lockdown. Trust Deed Scotland® recently wrote about Coronavirus Debt And Mental Wellbeing and gave some advice for many of the people respecting the rules of social distancing and self-isolation. While mental health issues and debt have strong ties with one another, the same is, unfortunately, true for gambling addictions and debt. Trust Deed Scotland® recommends reading our guide to find alternative ways to keep your mind and body activity during lockdown conditions created as a result of the response to the Covid-19 pandemic.

Online Shopping Debt Warning

As well as depression, anxiety and boredom leading to gambling debts and addiction, there is a further danger than Coronavirus lockdown boredom could lead to an increase in compulsive non-essential online shopping. Under normal circumstances, researchers have said that compulsive online shopping itself should be treated as an addiction and mental health disorder The further fear during the Coronavirus outbreak is that credit card debt and buy now pay later schemes may lead to further problems down the line, long after the eventual lifting of the Coronavirus restrictions. Home shopping catalogues too may seem more appealing as we look for ways to cheer ourselves up and pass some time while we stay at home with fewer options to keep ourselves occupied.

Gambling Debt Advice In Scotland

If you feat that you have a gambling addiction that has caused debts due to gambling, the first, and most obvious step is to completely stop your gambling. GamCare – GamCare offers support and information for partners, friends and family of people who gamble compulsively. Gamblers Anonymous Scotland – Local support groups for anyone in Scotland affected by their own, or someone else’s gambling problem – find your nearest group there. 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 Protection From Sheriff Officers

Posted on by Craig Stocks
The Coronavirus (Scotland) Act has now officially been enacted, which comes with greater protection against Sheriff Officers in Scotland, our equivalent of a Bailiff. The Civil Enforcement Association had previously reported that in England and Wales, bailiffs had until recently been harassing people over typical debts such as council tax debts, even while social distancing rules had come into existence. As well as better protection against Sheriff Officers in Scotland, there is also now more relief from creditor enforcement action such as Wage Arrestment. The new legislated changes are part of a temporary amendment to the Statutory Moratorium in Scotland and allows you to apply for 6 months protection against creditor debt collection enforcement tactics, including the use of doorstep Sheriff Officers to collect debt.  

What is a Scottish Statutory Moratorium?

  The word Moratorium itself is derived from 19th-century Latin word ‘morat’ meaning ‘delayed’ and sounds quite intimidating on its own, but it is a benefit of people in Scotland worried about how the Coronavirus crisis may impact their finances, especially where enforcement action has been threatened against the individual. So, what is a Statutory Moratorium? Quite simply, it is a temporary prohibition of creditor enforcement activity, that it is free for an individual in Scotland to apply for and does not require an application to be made to the courts in Scotland, even though it protects individuals from court-approved debt recovery practices, known as diligence in Scotland. Once applied for, the Statutory Moratorium protects people from any further action being taken by Sheriff Officers and from applications being made to the courts to make people Sequestrated. The Statutory Moratorium protects people  in Scotland from:
  • Charge for Payments
  • Wage Arrestment
  • Bank Account Arrestment
  • Attachments of Property
If you are being threatened with any of these actions, or the process has already begun, contact Trust Deed Scotland immediately on 0141 221 0999 and we can advise on applying for Statutory Moratorium on your behalf.

Does a Scottish Statutory Moratorium Freeze Interest and Charges?

If we go back to the original Latin meaning of the phrase Moratorium; it means that enforcement action will be ‘delayed’. Your debt total may still increase during this time as your creditors may continue to apply interest to the outstanding amount. The purpose of extending the Scottish Statutory Moratorium terms during the Coronavirus outbreak via the new legislative powers of the Coronavirus (Scotland) Act is to give you valuable breathing space during these uncertain times. As such, treat it as a stay of execution while you evaluate your options to pay back the debt to the best of your reasonable ability.  

Help With Sheriff Officers & Enforcement Action In Scotland

  If you’re struggling with unaffordable debts, due to a change in circumstances brought about directly as a result of the Coronavirus, or because you were already in financial difficulties before the crisis began, there is help available for you to repay those debts and look forward to a life after debt. As Scotland’s No.1 Debt Advice Company, having helped [volume] people since 2009; we have the experience required to help people in Scotland resolve their finances and get their monthly debt repayments down to an affordable level. Thousands of people have left Trust Deed Scotland a five-star debt advice review on TrustPilot and throughout the Coronavirus crisis, our advisors have been continuing to offer the same level of support, by working from home. Always 100% safe and confidential – our debt advisors have been working hard to explain the Pros and Cons of all solutions available to individuals in Scotland burdened with unaffordable debt concerns. We have spoken to while the Covid-19 crisis continues to unfold. Debt Arrangement Scheme The Debt Arrangement Scheme allows people in Scotland to repay all their debts, with one affordable payment each month. Once approved, the Debt Arrangement Scheme ensures that all interest and charges are legally frozen and ensures that you are protected against all creditor activity – from debt collection agencies to Sheriff Officers. In conjunction with a Statutory Moratorium, the Debt Arrangement Scheme will protect you from enforcement action. There are advantages, disadvantages and alternatives to the Debt Arrangement Scheme and you should give careful consideration to what is best for you, based on your own circumstances. Protected Trust Deeds Protected Trust Deeds use formal legislation that helps people reduce their overall debt payments to one fixed affordable monthly repayment. In order to qualify for a Trust Deed, you would typically have over £5,000 of unsecured debts. This may be credit cards, personal loans, payday loans and bank overdraft debts but can also include the likes of catalogue debts and Like the Debt Arrangement Scheme, in conjunction with a Statutory Moratorium, a Protected Trust Deed will protect you from enforcement action and Sheriff Officers. A Trust Deed term lasts a typical period of 48 months. After the Trust Deed term has complete, any remaining debt is then written off as unaffordable, giving you the freedom to get on with building your life. You should be aware that there are Trust Deed Pros and Cons, and there may be better solutions for you that allow you to deal with your debt and move forward with your life. Trust Deed Scotland® always recommends speaking to a qualified debt expert who shall be able to gather all information, and use that to give you a personalised illustration of the solutions available to you, and how it may affect you in the long-term.  

Where can you get reliable debt advice in Scotland?

  Talking about our debts to people that we do not know isn’t easy. Trust Deed Scotland® understands this more than most having helped over [volume] people in Scotland since 2009. We will always offer a friendly, non-judgemental advice service that doesn’t involve you being pressurised into a debt management product that you don’t understand. We’re very proud of our reviews we received where many people comment on the service that they have received and we will always have our clients best interests at heart. Give us a call on 0141 221 0999 or get started online.  

Credit Card Debts Scotland

Posted on by Craig Stocks
Credit Card Debts In Scotland are set to increase next month due to what a UK regulatory body describes as persistent debt issues. Persistent debt is classed as an individual who pays more in interest and charges than what they have paid off from their balance. If you have been struggling to make your minimum payment over a period of 36 months, you could find that you are no longer able to use the facility from next month onward. The rules which were designed in 2018 to reduce the cost of borrowing by encouraging customers to pay back their credit card debts sooner, where they can afford to do so. Trust Deed Scotland have spoken to thousands of worried clients over several years, many of which have had two or more credit card debts as part of their overall debt amount and are concerned that credit card lenders may not be doing enough to explain the process to their customers. The response varies from lender to lender. Amanda Hendry of Trust Deed Scotland advised “Whilst we understand that these measures were taken to help individuals manage their outstanding credit card debts, there has been an overall lack of communication or sense of urgency shown by the credit card lenders. There may be a vast number of people in Scotland holding hidden problem debts across multiple credit cards, personal loans and bank overdrafts. These debts will come to the surface and become unmanageable to the extent that priority debts could be missed as a result.” Virgin Money, the owners of Clydesdale Bank are said to be suspending their customers’ accounts from March 2020 onward alongside TSB. Nationwide will start suspending credit cards with persistent debt issues from February. HSBC, Royal Bank of Scotland, Santander and HBOS have yet to comment.

Credit Card Debts Help

If you have credit card debts and live in Scotland, there are options open to you where you can legally freeze interest and charges and get your monthly debt repayment amount back down to a level that is affordable, based on your own circumstances. Trust Deed Scotland can give you tailored, confidential advice on these solutions. Including the Debt Arrangement Scheme and Trust Deeds. If you are worried about credit card debts, give us a call on 0141 221 0999 and our experienced debt advisers will talk you through the pros and cons of these solutions and alternatives.