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Debt Management Plans In Scotland

Different Types of Debt Management Plans

How Do They Work?

 

An adviser looks at your income and expenses. They work out how much you can afford to pay to your debts.

 

The adviser contacts your creditors and gives them your details. They explain why you need a reduced payment. They ask for interest and charges to get stopped by creditors.

 

Your creditors are likely to agree to a fair repayment plan. They’re likely to agree to stop interest and charges. Neither of these things get guaranteed. You rely on the goodwill of your creditors.

Benefits

  • Help dealing with your creditors

 

  • Make a single payment every month

 

  • Money set aside for bills and expenses

 

  • Interest might get stopped

 

  • The plan can change if needed

 

  • You can end the plan at any time

 

Drawbacks

  • Damaged credit rating

 

  • Creditors may not agree

 

  • Interest and charges may continue

 

  • A restricted budget during your plan

 

  • No debt written-off

 

Summary

 

Informal debt management plans can be helpful. They are often successful. Your debts can get cleared over time. The lack of creditor protection is one major flaw. The chance that interest continues to get charged is another risk.

 

The Debt Arrangement Scheme (DAS) may be a better option. You will have increased protection and certainty.

 

You should also review trust deeds and bankruptcy. They might be a cheaper and faster way to deal with your debts.

 

Getting Advice

 

Please contact us to get debt management advice.

 

We can explain the pros and cons of your debt solution choices.

 

 

Page last updated: 25/02/2019

 

 

(c) Channel Active Limited. Company Number: 06412452. Data Protection Registration: Z1332750.

Telephone calls may be monitored or recorded. Authorised and regulated by the Financial Conduct Authority.

Trust-Deed.co.uk, Clyde Offices, 2nd Floor, 48 West George Street, Glasgow, G2 1BP. Tel: 0141 2490416.

 

(c) Channel Active Limited. Company Number: 06412452. Data Protection Registration: Z1332750.

Telephone calls may be monitored or recorded. Authorised and regulated by the Financial Conduct Authority.

Trust-Deed.co.uk, Clyde Offices, 2nd Floor, 48 West George Street, Glasgow, G2 1BP. Tel: 0141 2490416.