What are the options for dealing with debt in Scotland?

Scotland has a number of formal debt solutions that can help you deal with a difficult financial situation. It’s advisable to take action as soon as possible, however, to prevent your levels of debt escalating when interest and other charges are added.

Obtaining professional advice is key in this respect. An approved money advisor or licensed insolvency practitioner (IP) can explain your options, and help you decide on the best way forward.

They’ll assess your financial position by looking at your income and expenditure, identifying which debts should be given priority, and calculating how much you can afford to pay your creditors each month.

What are the unofficial ways to deal with debt?

Initially, you should try to negotiate with creditors for a more affordable repayment plan. If you contact them as soon as you’re unable to make a repayment, they may be more likely to let you pay over an extended period of time, or at a lower rate each month.

A professional adviser will negotiate on your behalf if necessary, and suggest ways to maximise your income – you might be able to claim a state benefit, for example, or you could be eligible for tax credits.

If your situation is such that only a formal debt procedure is appropriate, however, there are three main options available in Scotland.

For more information on your options when dealing with debt, call one of the team at Scotland Debt Solutions for a free initial consultation. We’ll make sure you understand the different debt procedures available for residents of Scotland, and guide you towards the best solution.