Debt Advisory Service - uncontrolled debt

How to escape the trap of uncontrolled debt

Many individuals are in so deep in debt that even the slightest change to their personal or financial circumstances could tip them over the edge.

There is no doubt that uncontrolled, debt can have a serious impact on both our personal and financial circumstances.

To help those struggling with debt, Debt Advisory Services Scotland provides free debt advice in Scotland and offer a comprehensive range of Scottish debt help solutions which include debt repayment plans and Trust Deeds in Scotland.

If you are really worried about your current level of debt then you should seriously consider seeking advice from a qualified debt advisor who can provide a range of Scottish debt help services.

However, before seeking professional help, there are several things that you can to help improve your current financial situation.

See our 6 Point Action Plan below to help you get back on track:

1. Don’t ignore your creditors

It can be too easy to just stick your head in the sand and simply ignore your creditor reminders. This is the last thing you should do as it won’t make the problem go away, it will only make matters worse.

2. Gather your facts and figures

If you are going to put a plan in place to get out debt, you need to know where you stand. The first think you should do is make a list of your creditors, the balances owed and monthly repayments. To help you gather this information you can apply for a free credit report online, which will list all of your recorded debts.

3. Prioritise your debts

Once you have gathered your information, the next stage is to identify your priority debts. Priority debts are those where failure to pay them off can have serious consequences and they include your rent, mortgage, council tax and energy bills.

4. Create a budget and reduce your regular outgoings

If you have debt problems, following a planned budget is central to helping you to become debt free. You need to work out how much money you have coming in and how much money is going out.

Following a budget will help you identify where you are overspending and where cutbacks can be made, freeing up money that can be used towards reducing your debts.

5. Cut credit card and loan repayments

Depending on your credit rating, you may qualify for a credit card that has a better interest rate than your current card.

Balance transfer cards allow you to consolidate your debts so that you only need make one manageable, monthly repayment.

Transferring your debt to a 0% interest credit card can make your repayments easier and can free up additional funds which can be used to reduce your debts.

If you decide to transfer to a 0% card, keep in mind that these cards may charge a balance transfer fee. To avoid paying interest in the future, you will have to clear the full balance before the end of the 0% period.

You could save money each month by consolidating your existing debts by taking out a consolidation loan with another lender that charges a lower interest rate.

6. Consolidate your debts by re-mortgaging

Re-mortgaging to consolidate debts may help you to regain financial control.

To Arrange a re-mortgage, you can either approach your existing lender for an additional loan which would be secured on your home or you could switch to another lender.

Instead of making payments for various loans, credit cards and store cards, you would only make one payment to your mortgage lender.

In order to qualify for a debt consolidation mortgage, you would need to have enough equity in your property to cover your new mortgage.

There are a number of advantages and disadvantages of consolidating debt into your mortgage that need to be considered before making your decision and they include:

Potential Advantages include:

• The interest charged on your re-mortgage will be lower than the interest being charged on your loans, credit cards and other unsecured debt.
• The monthly repayment for the debt consolidation part of your mortgage could be lower than the payments you were making to your unsecured creditors.
• Managing your debts should become easier as you will only be making one single monthly payment.

Potential Disadvantages include:

• While securing unsecured debt may help you to reduce your monthly payments your home would be at risk if you fail to maintain the repayments.
• Although your monthly re-mortgage payments may be lower than your current unsecured debt repayments, you could end up paying more in interest over the longer period.

For more information on debt consolidation mortgages visit: www.themortgageadviceservice.co.uk

Don’t be afraid to ask for help

If your situation is serious and If you’ve done all you can to cut down on your spending and you’re still struggling to make ends meet, then you should seek professional help as a matter of urgency.

If you are really worried about current financial position and you are looking for a way to become debt free.

Debt Advisory Services Scotland can help you prioritise your debts and help you find a solution to suit your personal circumstances.

The Scottish debt help services that we provide include Trust Deeds in Scotland.

Trust Deeds Scotland

Trust Deeds in Scotland are legally binding arrangements where you make reduced monthly payments (based on your affordability) usually for 48 months. The interest on your debt will be frozen, and when you have successfully completed Scottish Trust Deed, the remaining balance of your unsecured debt will be written off.

Trust deeds are only available to people who live in Scotland.

Trust Deeds in Scotland are not suitable for everyone, to find out if it’s an option for you, contact us today.

Debt Advisory Services Scotland provide a free financial review service to help identify the best solution for you to deal with your debts.

Debt Advisory Services Scotland is regulated by The Financial Conduct Authority to provide debt advice to people living in Scotland.

If you are worried about your current level of debt and If you are interested in finding out more about the available debt help in Scotland:

Contact Debt Advisory Services Scotland today on 0141 956 4088 or on 0800 011 2322 to speak to one of our friendly and experienced debt advisors.

Debt Advisory Services Scotland is regulated by The Financial Conduct Authority to provide debt advice to people living in Scotland.

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