If you are getting increasingly anxious about your debt and the fact that the interest on the same seems to be spawning new debts all on its own, then it is time that you considered some of the debt relief options that you can avail, for some relief.
While it is a good idea to practice fiscal management and stick to the plan at all times, you may have been forced to take debts for a variety of reasons. Irrespective of the reason you took on that loan, the fact remains that you still have to pay off your creditor and soon at that. So review some of the options listed below to apply for some immediate relief from your debts.
- You can set up a debt management plan, managed by a debt management company in consultation with your creditors. The company in question will assess your ability to pay you creditors and settle on an amount which you would be required to remit monthly. And the agreement stays till the debt is paid in full. Remember to set up the agreement with a company that has been authorized by the financial conduct authority or FCA. And most debt management companies would charge a setup fee and a handling fee, each time you make a payment monthly.
- If you have been asked to settle your debts in full by a high court or one of the county courts and you are not able to comply, you can apply for an administrative order. You can apply for one as long as the debts to be covered are less than £5000. Remember the courts will not waive any fees and would charge one each time you make a payment, which cannot exceed ten percent of your debt.
- Trust Deed Scotland: The Protected Trust Deed is where you come to an agreement with your creditors where in you agree to pay off all your debts with the payment being managed by an insolvency practitioner. Usually you make the payments to the practitioner who then splits it up between your creditors.
- Sequestration or Bankruptcy: If you have no funds at all, left to pay the creditors and have no assets to sell, then you can apply for a sequestration order. If you have little to no income and owe your creditors at least £1500, then you can apply for sequestration through MAP or minimal asset process. However, if you do have some income and are still unable to pay off your creditors, you can apply for sequestration where you will be allowed to retain the bare essentials. Apart from this, you would be required to pay a small monthly contribution towards your debtor contribution order.
Scotland has various debt relief options that any debtor can avail and seek protection from creditors. Additionally, you can also apply for a debt relief order and seek immediate relief. With these options listed here you should be able to recover from your debts soon.