More Scots Turning to Trust Deeds as Solution to Debt Problems
January 26, 2018
There was a notable increase in the number of people in Scotland entering into protected Trust Deeds during the final three months of last year as compared to the same period in 2016.
According to the Accountant in Bankruptcy (AiB), the number of Scots using Trust Deeds as a means of tackling their debt problems increased by almost 7 per cent year-on-year between October and the end of December 2017.
Taking personal bankruptcies into account as well the AiB’s official figures show an increase of 2.1 per cent between the final quarter of 2016 and the October to December period of last year.
On a quarterly basis, the overall number of personal bankruptcies and entries into protected Trust Deeds increased by 7 per cent between the periods July to September and October to December.
Meanwhile, the number of people living in Scotland who entered into a Debt Arrangement Scheme (DAS) during what the AiB refers to as being the third quarter of the year 2017/18 increased to 573 from 528 on a year-to-year basis.
The latest figures also suggest that close to £9.5 million was repaid to creditors via DAS and the repayment programmes they are based around during the final quarter of last year.
Commenting on the newly released numbers, Tim Cooper, chair of the insolvency trade body R3 in Scotland, said: “Personal insolvencies in Scotland have been on a slow, but generally upwards trajectory since around the end of 2015, and the latest rise fits this overall trend, following a slight quarter-on-quarter fall in the previous set of figures.
“Consumer debt levels are still rising steadily, albeit at a less rapid pace than in the past, while inflation outpaced wage growth, leading to greater pressure on people’s finances.”
Mr Cooper also noted that the figures for 2017 as a whole show a rise of around 8 per cent in the number of people entering insolvency across Scotland as compared with the previous year.
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