It’s difficult to know what to do when in debt, especially what company to go to for free advice. Glasgow is the debt capital of Scotland and many people don’t know where to turn for debt help and advice.
There are fee charging debt companies, companies which advise you for free but charge for the solution and debt advice charities. You should always make 債務重組 sure a debt advice company makes you feel comfortable and understands your problem. If you feel a debt advice company does not offer the level of empathy and care you expect then the fact the advice is free would not be reason to go with that company. You have a choice on the debt company you choose to help you with your problem and there are lots of good companies out there.
How can debt advice be free?
People in Glasgow are often worried about their debt problem and are confused by which company to trust. The problem is that there is a lack of transparency in the debt advice industry which leads to confusion and frustration. There are two types of for profit company: the one’s which charge and fee and the one’s that don’t. The companies that charge can give you a bill for up to £3, 000 and then leave you with your debt problem – so if you take anything from this article, it’s this, never, ever pay for debt advice.
Other companies that don’t charge for the advice will what to give you one of their debt solutions. You will generally have a choice over which debt solution you will follow. It’s important you are aware of the obligations you face when entering a debt solution. A free debt advice company will offer the debt solutions in-house to ensure they can, in some instances, make money from the debt solution itself. Most debt solutions are not paid for directly by the person in debt, instead creditors will hire the debt solution company to carry out the work.
What debt solutions are available
A Debt Management Plan is an affordable repayment programme set up by a debt management company. You would make one monthly contribution to a debt management company and they would liaise and pay your creditors. A debt management plan is usually for debts which will be repaid in a shorter period, such as less than 5 years. It’s an informal arrangement so can be difficult to stick to when times get tough, such as at Christmas and birthdays.
A Protected Trust Deed is a legally binding agreement with your creditors where you agree to make a monthly contribution to your debt via an insolvency practitioner. One of the main benefits of a Protected Trust Deed is you can repay a minimum of 10% and the rest of the debt is written off at the end of the solution. Typically the return is 30% of the money borrowed. A Protected Trust Deed usually lasts for 3 years. So, if you owed £100, 000 to your debt, you would typically repay £30, 000 over a 3 year period, with the rest being written off at the end. In order for this to happen you should comply with your Trustees requests. In Scotland there are roughly 9, 000 Trust Deeds protected each year.
The last debt solution is Sequestration, also known as Bankruptcy in England, Wales and Northern Ireland. Sequestration is the most damaging debt solution for your credit rating however if you are unemployed or have no income then it may be the right choice.