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A Changing Christmas in Scotland

Posted on by Craig Stocks

Prioritising Presence Over Presents in 2025: A Changing Christmas in Scotland

New research from financial wellbeing brand Loqbox has revealed a significant shift in how families across Scotland are approaching Christmas 2025. With cost of living pressures continuing to shape household budgets, many Scots are rethinking what matters most during the festive season. The result is a Christmas that feels more meaningful, intentional and focused on people rather than purchases. According to the data, four in ten adults in Scotland plan to buy fewer gifts this year. A quarter say Christmas has become too materialistic. Rather than diminishing the festive spirit, this shift highlights a desire to return to the heart of the season. When asked what truly makes Christmas feel special, only 7% said presents. A much larger 63% said quality time with loved ones mattered most.

How Scots Are Coping With Rising Costs This Christmas

The findings show how households are trying to balance enjoyment with financial pressure. Forty one percent of Scots plan to reduce the number of gifts they buy. Another 40% will look for more budget friendly alternatives. A further 40% say rising costs for gifts, food and travel take the shine off Christmas. Many people still enter the season without a clear spending plan. Six in ten Scots do not set a Christmas budget. This helps explain why 57% turn to credit cards, loans or Buy Now Pay Later products to cover costs. Hosting brings additional strain. One in three Scottish hosts spend more than £200 on Christmas meals. Only one in five non hosts spend the same. Despite these challenges, people are not withdrawing from the season. They are adapting instead. One in four are trying options such as Secret Santa, homemade gifts and preloved presents. More than a fifth are cutting back on social events to protect time with the people who matter most. Across Scotland, the message is clear. Presence is valued more than presents.

Financial Stress and Stigma Throughout the Year

The emotional weight of financial worry does not appear only at Christmas. Research from the Money Advice Trust found that 31% of adults feel ashamed or stressed because their financial situation holds them back. This sense of embarrassment can affect confidence, relationships and social participation. Many people are also uncomfortable talking about money. The research shows that adults across Scotland are often more willing to discuss politics, religion or serious health issues than their personal finances. Only a minority feel fully at ease speaking about money with family or friends. This reluctance can reinforce feelings of isolation. It can also prevent people from seeking support or sharing budgeting ideas that might reduce pressure. Financial stigma also shapes behaviour. Some individuals avoid social events because of cost worries. Others spend money they cannot comfortably afford so they do not feel left out. These experiences show that financial stress affects emotional wellbeing as much as practical decision-making. Our own 2024 survey reflects this wider picture of financial strain in Scotland. When we asked people what actions they had taken to cope with the cost of living crisis, thousands told us that everyday sacrifices had become routine. Only 7% said they had not needed to do anything. More than a third had cut back on food, and almost the same proportion had reduced their heating. A significant 66% percent had cut back on socialising or hobbies and almost 50% had reduced other essential living costs. Many respondents also turned to borrowing. 20% our customers had borrowed from family or friends to combat the cost of living crisis before they approached us for help with their debt, and just over 10% percent took on new debt to pay bills. Almost 26% worked extra hours or took on a second job. These findings show that financial pressure is affecting almost every aspect of daily life and that many people are having to make difficult decisions simply to stay afloat. In Scotland, where cost of living pressures continue to impact daily life, recognising these emotional challenges is important. Encouraging open conversations about money can help reduce stigma. It can also increase access to support that may improve financial stability throughout the year.

How Scots Prepare for Christmas

People take varied approaches to planning for December. Around a third save throughout the year. Another 28% begin planning in mid October. Roughly 16% follow a buy now and worry later mindset. For hosts, the financial load is often heavier. Nearly one in five expect to spend more than £500 on gifts. This is almost double the number of non hosts who plan to spend the same. Even so, 58% of hosts say the joy and togetherness of bringing family together make the pressure worthwhile. Tom Eyre, CEO and Co Founder of Loqbox, explained the shift. He said that “Christmas has always been about being together and that people are reconnecting with this idea. He added that the real magic is not found under the tree. Instead, it is found in time spent with loved ones.”

Looking Ahead: Our Trust Deed Scotland Survey

Now in its 4th year, our annual Trust Deed Scotland and Harper McDermott survey is currently running, with a focus on everyday cost of living pressures. This research looks beyond the Christmas period. It examines how rising prices, household expenses and debt worries affect people in Scotland throughout the entire year. The survey is open to our Protected Trust Deed and Debt Arrangement Scheme customers throughout December. Findings will be shared in the new year. Our goal is to understand the financial challenges that Scots face in daily life and to use these insights to shape supportive guidance and resources. If you’re a current or former customer of ours and would like to get involved, please contact us today. If you are feeling the strain of rising costs or struggling with debt, remember that free and confidential advice is available. Taking the first step towards support can make an important difference.

It’s a New Year and time for a Fresh Start

Posted on by Craig Stocks
The start of a new year often brings a natural pause for reflection. For many people across Scotland, January represents more than resolutions about health or habits. It is a moment to take stock of finances, stress levels, and the future they want to build. At Trust Deed Scotland, we believe a fresh start should be exactly that. It should be practical, informed, and free from judgement. To better understand the real experiences people have before and after seeking debt help in Scotland, we carried out a detailed December 2025 survey of 2,829 people who entered a formal debt solution. The results are powerful, honest, and in many cases deeply human. What follows is not just a collection of statistics. It is a snapshot of how debt affects everyday life in Scotland and how seeking the right help can genuinely change things. What you will learn in this article
  • Why nearly half of people in Scotland wait a year or more before seeking debt help
  • The emotional impact debt has on sleep, mental health, and family life
  • The most common causes of problem debt in Scotland today
  • Which types of debt cause the most stress
  • How confidence and wellbeing improve after entering a formal debt solution
If you are unsure where to start, our Free Scottish Debt Guide explains all available options in plain English.

Why People in Scotland Research Debt Advice Before Asking for Help

Before reaching out for advice, most people want reassurance that they are making the right decision.
  • 72% said they read Trustpilot reviews before seeking advice
This shows how important transparency, reviews, and real-life experiences are when someone feels vulnerable about money. People want to know they are not alone and that others in similar situations have been supported. Word of mouth also plays a role.
  • Almost 1 in 4 heard about Trust Deed Scotland from friends, family, or work colleagues
Debt is still something many people keep private. This makes independent research and online reassurance even more important. With more than 12,000 reviews, Trust Deed Scotland have more 5 star TrustPilot reviews than all other Scottish debt solution providers combined.

Missed Mortgage or Rent Payments Before Seeking Debt Help in Scotland

One of the biggest fears around debt is losing your home. Our survey shows that while many people were struggling, most managed to protect their housing before entering a solution.
  • 13%missed a mortgage or rent payment in the 12 months prior to entering their solution
Using Scotland’s mid 2024 population estimate of around 5,546,900 people, 13% represents roughly 721,100 individuals. This highlights how widespread financial pressure can be, even before it reaches crisis point.

How Long People in Scotland Wait Before Seeking Debt Advice

One of the most revealing parts of the survey looks at how long people delay before seeking advice.
  • 19.1%asked for help straight away
  • 35.2% waited up to one year
  • 21.8% waited between one and two years
  • 23.8% waited over two years
In total, 46% waited one year or more before seeking advice. That is almost half of all respondents. There is some positive news here. This figure has improved year on year, down from 48.9%. This suggests people are starting to seek help sooner than they used to.

Shame and Self Reliance

When asked what put them off seeking help sooner, the responses were open and emotional.
  • 61% felt ashamed or embarrassed about their debt
  • 45% believed they could deal with the debt by themselves
Debt rarely begins with reckless behaviour. It often develops quietly through rising costs, changes in circumstances, illness, or relationship breakdowns. Despite this, many people blame themselves and carry the burden alone. This makes one statistic particularly striking.
  • 97% said they wish they had sought debt advice sooner
Only 3% said they would not change their decision. This clearly shows how valuable early advice can be. If you recognise yourself in these survey results, speaking to an experienced debt adviser could help you take the next step with confidence.

Talking About Money Before and After Help

Money remains one of the most difficult topics for people to discuss. Before seeking help:
  • 72% did not feel comfortable talking about money
After entering a debt solution:
  • 81% now feel more comfortable talking about money
This shift is significant. Confidence around money is not only about budgeting. It is about communication, understanding, and control.

The Impact of Problem Debt on Mental Health and Sleep

Debt does not stay on paper. It follows people into their daily lives.
  • 91% lost sleep worrying about debt
  • 90% said their mental health was negatively affected by debt
After entering a debt solution, the improvement is clear.
  • 90% said their mental health improved
Removing uncertainty, pressure from creditors, and constant worry can have a profound effect on wellbeing.

Keeping Debt Hidden

Many people feel unable to speak openly about their financial situation.
  • 88% hid their unaffordable debt from family or friends
This level of secrecy shows why confidential and supportive advice is so important. No one should feel they need to face debt alone.

Causes of Financial Difficulty

Financial difficulty is rarely caused by one single factor.
  • 28.2% said a lack of control over their finances was the main issue
  • 26.3% cited the cost of living
  • Other causes included issues such as separation or unexpected life events
The cost of living crisis continues to place pressure on households across Scotland, often pushing manageable debt into something far more serious.

The Debts That Cause the Most Worry

Some types of debt create more anxiety than others.
  • Credit cards worried 76.1%
  • Personal loans worried 58.5%
  • Overdrafts worried 22.9%
  • Council tax arrears worried 15.3%
  • Buy Now Pay Later worried 13.9%
  • Payday loans worried 12.9%
Buy Now Pay Later is particularly topical, with regulation due to come into force in 2026.

How People Tried to Cope With Rising Costs

Before seeking help, many people made significant sacrifices.
  • 66.4% cut back on socialising or hobbies
  • 50.8% cut back on other spending
  • 33.1% cut back on buying food
  • 27.1% cut back on heating
  • 20.4% borrowed money from family or friends
  • 13.1% took on additional debt
  • 23.8% worked extra hours or took a second job
Only 8.1% said they did not need to take any action.

Work, Family, and Responsibility

Debt has a significant impact on working life and family responsibilities.
  • 55% worked longer hours or more than one job to manage their debts
  • 82% worried about providing for dependents while dealing with problem debt
These pressures are particularly heavy for parents and carers trying to maintain stability at home.

Are Trust Deeds and Alternative Debt Solutions Effective in Scotland?

The most reassuring results come from those who have already taken action.
  • 98% are satisfied with their chosen debt solution
  • 94.1% feel more confident managing their household budget
These figures reflect regained control, clarity, and peace of mind. Many people find that a Trust Deed or the Debt Arrangement Scheme provides the structure and protection they need. You can learn more about how a Trust Deed works and whether it is right for you, or if an alternative debt solution best fits your needs.

A Fresh Start Is Achievable

The message from this survey is clear. People do not regret getting help. They regret waiting. A new year does not automatically solve financial problems, but it does provide an opportunity to take a different step. Whether someone feels overwhelmed, embarrassed, or unsure where to begin, confidential debt advice can make a real difference. A fresh start is not about failure. It is about taking control and moving forward with confidence.

Cost Of Living Scotland: Energy Bills

Posted on by Craig Stocks
In the latest of our cost of living in Scotland series of articles, Trust Deed Scotland® focuses on energy bill increases, which are expected to worsen finances for many households across the UK. With day-to-day costs like energy, food 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. Arguably, the costs in energy bill increases in Scottish households have been more widely publicised than our increased cost of weekly food shop for example. A recent Citizens Advice Scotland study found that as many as 84% of Scots are worried about the cost of their gas and electricity increasing. The poll of 1001 adults in Scotland found just 12% of those who answered the survey said they were not concerned about the rate rises. Even more recently than the published CAS survey data, the Ukrainian/Russian crisis is expected to create further increases in our energy bills with claims being made that UK energy bills could be as much as £3,000 per year by the start of 2023. There are many reported cases of people cutting back on how much they spend on food or are eating less, so they can pay for heating. Many people are falling into arrears, or using credit cards to pay for essentials, making the problem worse. If this sounds like you, you certainly are not alone. We can help.

Comparing energy quotes to save money

In normal circumstances comparing energy would be the best way to save on electricity and gas. The process is usually really simple – using a service such as Money Saving Expert, you provide them with a few details, such as your postcode, current supplier, and payment and contact details and they show you comparative quotes. However, conditions in the energy market right now mean that you are currently unlikely to be able to switch your energy and save you money. As many providers have recently ceased to exist, themselves victims of the rising costs in energy, naturally the options to switch are decreasing also.

Quick tips to save money on energy bills in Scotland

The Energy Saving Trust published a list of 10 tips that can help you save money on your electric and gas bills. While we’re all responsible for the energy in our homes; whether we own our own homes or rent. Whether we live in student accommodation or live at home with our parents.
  1. Switch off standby You can save around £55 a year just by remembering to turn your appliances off standby mode. Almost all electrical appliances can be turned off at the plug without upsetting their programming. You may want to think about getting a standby saver or smart plug which allows you to turn all your appliances off standby in one go. Check the instructions for any appliances you aren’t sure about. Some satellite and digital TV recorders may need to be left plugged in so they can keep track of any programmes you want to record. 2. Draught-proof windows and doors Unless your home is very new, you will lose some heat through draughts around doors and windows, gaps around the floor, or through the chimney. Professional draught-proofing of windows, doors and blocking cracks in floors and skirting boards can cost around £200, but can save around £40 a year on energy bills. DIY draught proofing can be much cheaper. 3. Turn off lights Turn your lights off when you’re not using them or when you leave a room. This will save you around £20 a year on your annual energy bills. Replacing all the lights in your home with LED bulbs could help you save even more. 4. Careful with your washing You can save around £28 a year from your energy bill just by using your washing machine more carefully:
  • Use your washing machine on a 30-degree cycle instead of higher temperatures.
  • Reduce your washing machine use by one run per week for a year.
5. Avoid the tumble dryer Avoid using a tumble dryer for your clothes: dry clothes on racks inside where possible or outside in warmer weather to save £55 a year. 6. Spend less time in the shower Keeping your shower time to just 4 minutes could save a typical household £65 a year on their energy bills. 7. Swap your bath for a shower Some of us might enjoy a long soak in the bath, but swapping just one bath a week with a 4-minute shower could save you £11 a year on your energy bills. 8. Be savvy in the kitchen Kettles are one of the most used appliances in the kitchen. But many of us will admit that we at least occasionally boil the kettle with more water than we’re going to use. Avoid overfilling the kettle and save yourself £11 a year on your electricity bill. You could also consider fitting an aerator onto your existing kitchen tap to reduce the amount of water coming out without affecting how it washes or rinses. An aerator is a small gadget with tiny holes. they attach to the spout of taps and are cheap and easy to install – and could save you £22 a year. 9. Fill your dishwasher Only run your dishwasher when it is full to reduce the amount of water you use. Reducing your dishwasher use by one run per week for a year could save you £14. 10. Top up the insulation Effective insulation of your hot water cylinder is important: even if you have thin spray foam or a loose 25mm jacket, you can benefit from increasing the insulation to a British Standard Jacket 80mm thick, saving £35 a year in the process. Insulating your water tank, pipes and radiators is a quick and easy way to save money on your bills.

Help with funding

Home Energy Scotland can help you access funding to improve your home’s energy efficiency. You may also find it useful to check any benefits that you are entitled to using the Scottish government’s benefits calculator tool.

Help to repay unaffordable debt in Scotland

It is important to understand that some bills are more important than others. Known as priority bills, you should pay these bills first and a current utility bill is indeed a priority bill and should be paid before your other debts such as credit cards and payday loan debts for example. If you feel like you’re really struggling with unaffordable debts – Don’t worry. You’re not alone. 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 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.

Improving your credit score after a Trust Deed

Posted on by Craig Stocks
One of the biggest downsides for many people considering entering into a Protected Trust Deed, or any other formal Scottish debt solution, is the impact on their credit score. You may typically be in a Protected Trust Deed for a period of 48 months but you will find that for a further 24 months at least, your credit rating is substantially worse than when you were at the peak of your borrowing. However, if you continued to do nothing about your debts, missed contractual repayments and defaulted on your payments, then this in itself would have a severe impact on your credit rating too. Your credit score, lifestyle and needs are taken into consideration while working out which solution may be best for you if you do have unaffordable debt. Ultimately, you are responsible for your own decision and should you approach a company looking for debt help, together you will go through the advantages and disadvantages of each solution and how it may impact you. The process for cleaning your credit rating after a Protected Trust Deed is largely the same as if you were Sequestrated (made bankrupt) or completed a Debt Payment Programme (DPP) as part of the Debt Arrangement Scheme (DAS). In theory, you shouldn’t need to do anything to improve your credit score after a Trust Deed, as it should disappear from your credit rating but sometimes work is required to expedite the process. The detail and dates may vary for Sequestration and Debt Arrangement Scheme, depending on how long you are in the solution. e.g. MAP Sequestration, you may be discharged earlier than you would in a Trust Deed, or with DAS. you may still be making payment contributions for longer than the six year period. The following guide relates to Protected Trust Deeds more specifically, but you can also view our guide: Improving your credit score after repaying debt under the Debt Arrangement Scheme.

How Protected Trust Deeds should show on your credit record

What should happen after a few months?
  • The Trust Deed shows in the Public Record section of your credit record. It can take a few weeks for the entry to appear
  • All debts in your Trust Deed should be marked as defaulted The default date for every debt included in your Trust Deed should be the date your Trust Deed started or earlier
  • There will be no change for any Decrees ( CCJs in Scotland) even though they are in your Trust Deed
  • There will be no change for any debts, such as your mortgage, which do not form part of your Trust Deed.
When your Trust Deed term ends and you have received a ‘Letter of Discharge’ the changes to your credit file depend on whether this is less than six years after the date your Trust Deed started or more than 6 years. With a typical Trust Deed case lasting 48 months, in most cases, you will receive the letter well in advance of the 72 month term. If you have the fortune of being able to pay off your debts in full, even before the term of your Trust Deed has concluded, your credit file will still show an active Trust Deed mark. All debts that you included in the Trust Deed should have their balance owed set to zero. The Information Commission Office (ICO) says that the debts should be marked “to show that you no longer owe money on that account (perhaps by marking the entry as ‘partially satisfied’ or ‘partially settled’ or in some other way).” How this is reported depends on what credit report system you are viewing, however in practice, it shouldn’t matter providing the balance owed is zero. Decrees in your Trust Deed will not be changed – they cannot be marked as ‘partially satisfied’ – barring the unlikely event where you have repaid 100p in the £ to all your debts included in the Decree debt(s). If all the above has happened correctly, after six years everything vanishes and your credit rating will improve substantially.

Correcting problems with your credit score after you have finished your Trust Deed term

Depending on the creditors you have, you may need to check that your credit records with all the Credit Reference Agencies because the creditors only tend to report to one of them. While we often refer to our credit score as a single entity, the reality is that in the UK we have three credit scores as we have three main Credit Reference Agencies in the UK: Equifax Experian TransUnion Each Credit Reference Agencies (CRA) has a record of your data that has been sent to them by your lenders. Most lenders typically report to one of the three CRAs, however, some may report to all three. Your credit report with Equifax can look very different to your Experian file. This doesn’t mean however that you have a better credit rating on one over the other, they are reporting on different information from different lenders. Should you encounter one of the problems below, you shall need to contact your creditors directly, as the agency will forward any complaint directly onto them and not take an active involvement in the correction of the information held about you, as frustrating as that sounds. When it comes to complaining to your lender about an error in your credit report, you should always complain in writing. This will help ensure that there is a paper trail of the logged complaint, but also consider that whoever you speak to, in branch or at call centre level, may not always know what a Trust Deed is, or for that matter any other formal Scottish debt solutions including the Debt Arrangement Scheme. Find information on the Data Controller from the ICO website and send the following letter to your creditor, recorded delivery. Make sure you keep a copy of the letters you send and get proof of postage. This may seem a bit troublesome and intimidating in itself, but while most problems can and will be resolved amicably, this will help you ensure your case is sorted to your satisfaction. Generally, you should wait 6 months after the Trust Deed begins to start this process. There is no rush at this stage since you have several months and years to go.
Dear [Creditor] Re: [account/reference xxxxxxxxxxxxxxx] I started an Protected Trust Deed (PTD) on dd/mm/yyyy. You can confirm this by checking the Register of Insolvencies at https://roi.aib.gov.uk/roi/PublicSearches/PublicSearch I am writing to ask you to correct my credit file for [details of your debt with the creditor, including the account number or reference number]. This debt is included in my Protected Trust Deed. At the moment [there is no default date shown / the default date is shown as dd/mm/yyyy]. This is incorrect and a breach of the Information Commissioner’s Office guidelines and the Data Protection Act 1998. There should be a default date not later than the start date of my Protected Trust Deed. Please correct this entry within 28 days or supply me with a written reason why you will not do so. Regards [Your Name]
If the creditor replies saying that they don’t know anything about the Trust Deed, inform your Insolvency Practitioner. Where a creditor has knowledge of your Protected Trust Deed but refuses to add, or correct the default date, complain to the Financial Ombudsman. Attach copies to the creditor, the proof of posting and any reply that you’ve had from the creditor in question.

If your creditor doesn’t mark your balance as zero after Trust Deed is completed

If the default date for the debt is on/before the date your Trust Deed started, as would typically be the case, the debt is going to disappear from your credit record six years after that date. Where there is a lag of a few months, you may decide to correct this immediately or be content that your credit score will naturally correct itself in the same period. However, if you do want this correctly sooner, send the below letter to your creditor. Again, by recorded delivery and getting proof of delivery, and keeping a copy of the letter that you send.
Dear [Creditor] Re: [account/reference xxxxxxxxxxxxxxx] I completed my Protected Trust Deed on dd/mm/yyyy. I attach a copy of my Letter of Discharge. I am writing to ask you to correct my credit file for the above debt which was included in my Protected Trust Deed. The Information Commissioner’s Office guidelines state that my credit file should show that I no longer owe money on that account, perhaps by marking the entry as ‘partially satisfied’ or ‘partially settled’ or in some other way. Please correct this entry within 28 days or supply me with a written reason why you will not do so. Regards [Your Name]
Again, if the entry is not corrected, complain to the Financial Ombudsman. Please note that your creditor is not obliged to mark your debt as fully settled/satisfied so partially settled/satisfied is more realistically the best you will be able to achieve by taking this action. Decrees are not amended The sheriff court only has to mark a Decree as satisfied if you have paid it in full, which you haven’t done so. A decree will remain on your credit record with a balance showing and can’t be changed.

Is all this worth doing?

It is worth correcting the dates of default unless they are only a few weeks late. If default dates are late or missing, they delay the time until your credit file is clean as those debts will remain for six years after the default date. Depending on your lifestyle and aspirations, you may decide to apply for a mortgage or move to a new property after the Trust Deed term has ended. In which case, it is essential that your credit record is corrected and improved upon as quickly as possible. On the otherhand, having endured an extended period of financial difficulties, resulting in the need to seek help, it’s easy to understand why you would be less inclined to be deemed creditworthy again so soon after finally being able to declare yourself free from debt. Getting the balances set to zero after you get your Letter of Discharge is less important. Even if you get this amended, most applications for credit are likely to be refused whilst the Protected Trust Deed remains on your credit file. If you are close to the six-year drop-off, then you could decide to wait and let that clean everything up. However, if the balances are all zero, although this doesn’t improve your credit score at all, it may be enough for you to be approved for a ‘Poor Credit / Bad Credit’ card, see below. A zero balance also prevents the debt from being ‘sold on’ to another Debt Collector, which will result in you having to correspond with another third party and having to send them details of your Trust Deed.

Getting positive markers on your post-Trust Deed credit score

You should aim to start rebuilding your credit score after the Trust Deed ends. You should aim to start acquiring new, positive credit marks after your Trust Deed has finished. If you don’t, when your credit record becomes clean, it is also has nothing showing. By following the steps above, you are dealing with the cleanup process of your old debts.

1. Electoral Roll

Make sure you are on the electoral roll. and that your address and any other details are correct with the Credit Reference Agencies. This is important as lenders use the electoral register as an indicator that you live where you say you do, helping to prevent fraud. This step of being able to verify your identity will in itself have a positive impact on your credit score.

2. Poor (Bad) Credit Card

There are a number of poor (bad) credit card companies known as Vanquis, Aqua and Luma. You may be familiar with these brands already, generally, you should avoid reapplying for a credit card with one of these lenders, if they were included in your Protected Trust Deed as a creditor. You may still be refused credit by one of these companies, however, ensure your credit score is clean with all three Credit Reference Agencies and, wait another few months and then apply for another poor (bad) credit card. Always be mindful of your affordability and avoid getting back into a situation where you have problem debt once again. Consider that in order to be accepted for a poor (bad) credit card, you will be more risk to that company, and the rates they charge will not be as favourable. These cards can be dangerous. Over 4 million people across the UK have a credit card in this category, which can also be marketed as sub-prime credit cards, credit-builder cards or second chance cards. Research from a UK regulatory body, the body responsible for regulating the credit card industry also found that as many as 25% may default on their poor (bad) credit card within one year, or as reported by Stepchange, many people also use these cards with a typical APR% of 34.9%-69.9%. Therefore, only use a credit card well and your credit score goes up because as recent times have shown, we can never predict a sudden change of circumstances beyond our control. indeed this is something that you most likely experienced before you applied for your Protected Trust Deed originally. To get the biggest boost to your score:
  • Use the card once a month for something that is less than a quarter of your credit limit, such as a tank of petrol.
  • Set the card to repay the full balance every month by direct debit.
  • Know when the direct debit is collected and make sure there is the money in your account for it.
  • Most lenders let you change the date, just after you are paid is often best.
This is the best way to maximise your credit score – using the card, but never too much and never running a balance. Your credit rating will not improve if you leave a balance on the card Your credit score is maximised by using the card every month for small transactions, closely monitored by yourself and repaying the card in full every month.

3. Save with LOQBOX

LOQBOX is a tool designed to help rebuild your credit score with the aim of giving you access to more lenders, and ultimately better rates. LOQBOX works by reporting your monthly savings, (which it classes as a loan) to the Credit Reference Agencies. LOQBOX is not a loan, it’s a ‘cash redeemable savings voucher’ where you essentially use finance to purchase a voucher, which in turn is viewed by the CRA’s as a loan. This lets you save money every month for a year and reports this to the Credit Reference Agencies as a loan you are repaying, so your credit score improves and is less of a risk than walking the tightrope of taking on bad credit cards and falling behind again. However, LOQBOX is not risk-free either. If you do miss one of your payments, this will be reported to the CRAs and will have a detrimental impact on your credit score. It is possible to avoid this by immediately quitting, which may still affect your credit score but with a lesser consequence. LOQBOX is not without cost either, you will typically have to open an account with one of their suggested saving accounts, for which they receive a commission from their partner and should you wish to avoid this and have the money paid into your own account; you’ll have to pay a £30 fee. When all your Trust Deed debts go, there is then this simple loan which you have repaid on time so your credit score is good. Find out more about how LOQBOX works.

Rebuilding a credit rating takes time

If you were expecting the end of your Protected Trust Deed to make an immediate improvement to your credit score, it usually doesn’t, unless it is after the six year point and there isn’t a way to speed this up. Firms selling a ‘repair your credit’ service either don’t work at all, or they will be no better than what you can do yourself using the letters here.