Excellent Debt Helps Options Extended By Scotland Government

by Aritra Agarwal Marketing Manger

In an event when you are having difficulty in clearing your debt, there are a number of options available to help you overcome the problem. There are good options available for residents of Scotland and to mitigate the problems of debt you can avail Government Debt Help. However, which option will be most suitable for you will depend on your personal circumstances and you need to choose the correct one.

Here, in this article, you will find a discussion on various options which you need to understand for making a correct choice for your debt solution. Government Debt Help Scotland has brought these debt solutions to help people settle the issues of debt and to make them feel more secure.

The Debt Arrangement Scheme or DAS: DAS is a free debt management solution which allows the users to repay their debts over a time. A reasonable rate for repayment is arranged to help the debtors tide over the debt issues. During the repayment period, the debtors will be protected from the creditors and no undue advantage can be taken by the creditors.

Ø The eligibility criteria: If you want to avail and apply for the Debt Arrangement Scheme you will have to meet the following criteria:

1. You should have at least one or more debts

2. You should be based or should live in Scotland

3. You need to apply for the scheme through an approved money adviser

4. There should be a minimum amount of money left for debt repayment after meeting your household bills and basic needs.

In case you are a couple and have at least one debt for which you are liable, you may apply for such a program.

A money adviser will make a registration of the intentions made by you for application to a Debt Payment Program. This is called ‘intimation’ and it will give you a period of six weeks when the creditors cannot take any action against you. Creditors need to reply within 21 days of receiving proposal; for DPP otherwise, it will be considered as accepted. For any dispute, the DPP administrators will decide about the further course of action.

The Debt Management Plan: This plan is set up between your creditors and you and makes a plan for payment of your debt. It will set out the timeframe for repayment for non-priority debt those are not secured against your home. The DAP of Government Debt Help Scotland also has set out the amount for repayment against a timetable for it.

You should always avoid the providers for a Debt Management Plan who promises free service as these people may extort money from you by unscrupulous means.

Trust Deeds: This is a voluntary agreement made between you and your creditors in order to make a smooth repayment process. This deed allows you to make monthly repayments for a period of three years against your unsecured debt.

Government Debt Help has introduced such Trust Deeds and there are certain criteria for application for a Trust Deed:

Ø Unsecured debts such as loans or credit cards or overdrafts

Ø Excess income to pay the amount of debt and you should have assets which can be sold off to meet debt repayment.