Predictions for Trust Deeds and Sequestrations in 2012

Experts projecting Scottish insolvency figures for 2012 have predicted that 400 people a week will become insolvent in Scotland. Insolvencies include trust deeds and sequestrations. This may come as no surprise given that other reports state that 20% of the UK population experience a constant monthly struggle to manage their debts and pay their household bills. With unemployment growing, many salaries frozen, and persistent price inflation, we may be on the precipice of unprecedented demand for debt advice in Scotland.

Debt Advice in Scotland Increasingly Required

For some people January can always be a difficult month as they try to pay off their credit card spending from Christmas. This year seems to be biting harder than before though. One survey that we have read states that 42% of their survey sample said they would use credit cards to pay for groceries in January and that 7% would use them to pay utility bills. The use of credit cards for basic expenditure such as food and utilities is a key driver of the need for debt advice in Scotland and serious debt resolution methods such as trust deeds.

2011 witnessed a significant increase in the amount of people seeking debt advice in Scotland. The Money Advice Trust (MAT) now predict a surge in the demand for debt advice in Scotland and around the UK for 2012, estimating that 2.5million people around the UK are currently in arrears on at least one consumer credit product or household bill.

Despite the predictions of increased needs for debt advice in Scotland, RSM Tenon has predicted that formal insolvencies such as trust deeds and sequestrations will remain at similar levels to those seen last year. They are represented on our trust deeds forum by Kevin Mapstone. RSM Tenon believes that the reason for this levelling is due to homeowners benefitting from low interest rates on their mortgages which for many frees up some money for them to continue paying their credit cards and loans. However, when interest rates do increase, they predict we may see another increase in numbers of trust deeds, and sequestrations along with additional needs for debt advice in Scotland.

Of course, predictions such as these are of no value or comfort to an individual faced with debts they are struggling to repay. If you are finding yourself struggling to pay your debts, or paying for basic needs with credit cards, we’d strongly suggest that you arrange to speak with a professionally qualified debt or trust deeds adviser. There are many reputable sources of debt advice in Scotland so please do not panic and accept the first helping hand offered to you (especially if it’s a cold-caller).

You may also find our trust deeds forum to be a useful source of debt advice and support. A panel of advisers from a variety of trust deeds companies are available to answer questions and offer their guidance. You may also find inspiration from forum posters that have found relief from tackling their debt problems and from others who have now put their financial problems behind them after turning to measures such as trust deeds, sequestration or the Debt Arrangement Scheme.

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