Are you one of many mums in Scotland trying to keep your head above water?
Think you’ve got the most severe financial situation with no solution in sight?
Fear not, Aunt Meg has seen the worst of the worst and helps mums all over Scotland discover the light at the end of the tunnel.
Though we recommend a free consultation with one of our experts to help tailor a plan according to your specific needs, here is a bit of free advice you may want to consider.
Here are a few of the most common ways Scots have legally reduced their debt by up to 75%
Do You Need Financial Assistance?
Opting to accept financial help is an important step to make, but it comes with its challenges as well as a high-level of commitment.
Here are a few ways we identify the optimum times to seek financial assistance:
- A recent separation or divorce resulted in your household income to decrease significantly
- You or your spouse have suffered long-term injury or illness causing major financial crisis or inability to work
- Your salary has been cut due to job or position changes
- Your cash is spread too thin to keep up with debt payments any longer and you find yourself falling more and more behind
Whatever has landed you in the position you’re in, if you are entirely overwhelmed by bills, now’s the time to get the help you need to reduce your debt.
Seek Financial Advice
Talking to a financial expert is often the first and best place to start.
Oftentimes, an initial consultation with an advisor is free. It certainly is with Aunt Meg.
Aunt Meg understands how valuable it is to have an effective conversation that lays out where you need to start in your plan towards financial resolution.
You may also talk to your personal banker and even your creditors. It may be intimidating to contact the people you owe. You could even have a representative do it for you.
Either way, your creditors want you to be able to make the payments you can afford, creating a line of communication will eliminate your fear of your creditor and also help them understand your current situation and advise you on making at least minimal payments (which they may even reduce).
Whoever you decide to talk to it’s simply important that you do.
The longer you suffer in silence, the worse the situation may become.
The Debt Arrangement Scheme (DAS)
If you live in Scotland, you may apply for a debt arrangement scheme. The DAS offers free management and consultation services that ultimately set you up a debt payment program.
A DPP will consolidate all approved debt into one manageable payment.
This option may be right for you is you are
- Planning to remain in Scotland until finishing the entirety of your debt
- Will commit to your payments
- Have one or more debts
- Willing to work with and cooperate with a debt arrangement scheme advisor
Once the payment plan is set-up you will be protected from the solicitation of creditors.
Debt Management Plan
Setting up a debt management plan is much like a DAS minus a bunch of middle-men. Instead, you will go directly to your creditors to reach an absolute minimum amount to be paid monthly on your debt. You will offer reason and explanation along with your income and other monthly expenses. Or this can be arranged through a company that provides debt management plan services. You will then make one payment to the DMP provider that then dispurses your minimum payments to the creditor.
Again, the benefits include managing your debt without going completely broke while also silencing creditor calls. Many organizations even provide debt management plans for free.
A trust deed is an opportunity to write off debt by offering up assets during repayment. For many people, this is a second chance and the most reasonable way to start over financially.
A trust deed collects your total approved debt from creditors or whoever you may owe and closes those accounts by creating a new, single line of debt, or a deed. The collateral for this deed is in the form of assets including homeownership titles, car titles, land, or other owned possessions that are of equal value to your debt.
This collection of ownership rights are held by your lender who has provided the loan to pay off your debt. You will then have only one regular payment to maintain instead of multiple payments to multiple collectors.
Bankruptcy, also known as Sequestration is a petition made to the court by your creditor or you may apply on your own. Entering sequestration is a drastic measure, but for many, it’s the only option. Eligibility requirements are as follows:
- Must have lived in Scotland for the past year
- Have debt exceeding £1,500
- Have not entered sequestration in the last 5 years
Advantages of entering sequestrations include putting a stop to all creditor action and most importantly, your debts will be written off by the end of the process (usually 12 months). Many hesitate to file for bankruptcy as assets may be used to apply toward credit.
For example, you may be required to sell your car or home, or possibly remortgaged. The options not for everyone, but it’s the only option for some.
Talk to Aunt Meg
Aunt Meg is an expert in anticipating the needs of mums in debt. We understand these options may be confusing as you’re not sure which is right for your circumstance. If you’re considering options to reduce your debt, we urge you to reach out to us for your free consultation. Help is waiting.