Struggling With Debt

There has been a huge increase in the number of families relying on food banks this winter to keep them afloat during the cold months. It’s a difficult position to be in when you find yourself choosing between turning on the heating or stocking up the fridge.

Families that are struggling with debts will find their financial position even tougher, because they don’t only have to contend with soaring food and fuel prices, but huge chunks of income are eaten away by debt repayments every single month.

People that are unable to cover their usual household expenses, including shopping and heating, because of unmanageable debt, need to take action. The longer financial difficulties are ignored, the harder the problem becomes to resolve, so it’s imperative that people start as soon as possible. Facing up to debt worries and financial problems can be really scary – to the point that some would prefer to shuffle them under the carpet. It’s important that families in this sort of trouble remember that there are plenty of debt solutions out there that could help the strain on their income.

With food and heating devouring through more and more income each month, there is bound to be less cash leftover to put towards debt repayments. Although the demanding letters can often be frightening, people with debt need to prioritise their spending and ensure that the family are kept healthy and warm.

Families struggling with debt in Scotland are able to access a number of debt solutions that can cut the cost of debt repayments. One of the most popular schemes is a Trust Deed, which is an alternative to bankruptcy.

If debts are reaching unmanageable levels, above £10,000 and to multiple creditors, you may be able to enter into a trust deed. This debt solution was introduced by the Scottish Government just a few years ago to help people in difficult financial situations.

You will need to work with an insolvency practitioner (IP) to work how much you can afford to repay each month, once your household expenses have been accounted for. Your IP will apply for a trust deed on your behalf; they will submit a proposal to your creditors which details how much you are able to repay.

The trust deed will usually last for three years and as long as you have kept up to date with your repayments, any remaining debt will be written off.