Scottish employment market slowly improves

27th July 2011

Periods of unemployment are one of the most powerful drivers of the build-up of debts which can eventually lead to a Scottish trust deed . For that reason, those interested in the subject of personal debt keep a keen eye on the employment prospects of the nation.

The latest employment statistics and surveys suggest Scotland is performing much better than the UK as a whole. For a third month running Scotland outperformed the overall UK statistics for employment. However, the rate of improvement does appear to be slowing.

The statistics and surveys cover a number of different criteria. For example, the largest growth in wage levels was in Edinburgh, whilst Dundee saw the most significant number of people finding work. Those working in computing or IT appear to be in the greatest demand.

Overall, an improving labour market should ensure fewer individuals find themselves in difficulty in the future, ultimately reducing Scottish trust deed numbers. However, those re-entering the workplace may find that debts amassed during a period without work are stubbornly difficult to repay. In some circumstances the debt level may actually increase as the pressure of debt repayments leads to further borrowing.

Those providing Scottish trust deed advice suggest workers should create an old-fashioned budget in which they record all of their sources of income and then subtract all of their costs, including their debt repayments. Hopefully it will be the case that careful budgeting allows for a reasonable lifestyle and the gradual repayment of the debts.

Where there appears to be a financial imbalance it’s important not to panic and rush into serious debt measures like a Scottish trust deed. The first steps should be to think logically about whether other sources of income can be located (tax credits for example) or whether there are areas of expenditure where savings can be made or costs eliminated altogether.

Only where debt repayments remain unaffordable after this process should consideration of formal debt solutions come into play. Where the debt total is relatively modest, a repayment option such as the debt arrangement scheme is probably the first area of consideration. Unlike a Scottish trust deed, the debt arrangement scheme results in full repayment of the debts and is not a formal insolvency measure. It may therefore be less damaging overall.

Those with more serious levels of debt, but thanks to income levels are in a position to make a reasonable level of monthly repayment, may consider a Scottish trust deed to be an option worth further examination. Those with assets will want to find out, in advance, how their assets will be treated in a Scottish trust deed.

Anyone currently out of employment is unlikely to be able to afford a significant monthly contribution towards their debts. For example, it’s not considered appropriate to fund Scottish trust deed payments from benefit income alone. The option may be to consider bankruptcy (sequestration), though many may choose to wait until employment has been found in the hope that less severe measures to deal with their debt are then accessible.

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