Money Advice in Scotland - Payday Loans Are NOT the answer!

Posted on Friday, 6 January 2012 in Other Financial News2011 saw an increase in the number of people seeking money advice in Scotland from Scottish owned and operated Trust Deed Scotland due to a variety of reasons such as the rising cost of living, which is affecting the lives of many Scottish families.

Earlier this week, it has been reported in the mainstream media that there are a number of 'Zombie Debtors' a term used to describe an individual who exists on a month-to-month basis and can only pay minimal repayments to their debts ensuring that the debt remains static.

In recent years, a number of payday loan websites have arisen and at this time of year when many people are feeling a post-Christmas hangover.

It is in this difficult period that more people than usual will be tempted to use the short term fix of a Payday Loan but the rates of interest are so inflated that the value for money offered is outrageous.

As reported recently by STV, the Scottish Government are now involved and are appealing to Westminster to review Payday loans citing 'ludicrous rates of interest' and to cap interest rates similar to what many countries in Europe and several states in the United States currently do.

Margaret Burgess of the SNP, who was formerly a director of Citizens Advice Scotland commented that Payday Loans "often just traps people in a downward financial spiral which is hard to escape from" and Alyn Smith of the SNP further added "Far from helping, though, these sort of loans often lead people deeper into debt with more severe financial difficulties."

Currently the Scottish government has no legislative powers to limit interest rates on Payday loans and on this Alyn Smith said "Cameron and his cronies must get their act together and regulate these companies out of existence before more people face financial ruin as a result."

Recently payday loans and the companies that offer them have been targeted publically and one such group is Say No to Payday Loans which was launched by Steve Perry, an individual who was personally affected by Payday Loans and is the author of the book When Pay Day Loans Go Wrong. Mr Perry is currently busy campaigning against short term loans, high interest loans nationwide and speaking to Trust Deed Scotland he advised "Running hand in hand with the capping of interest rates and possibly more crucial is the need to remove the 'rollover process', limit the amount of times a household can borrow and make the whole application process much more thorough than present standards.

There are fears that making the above regulatory changes will put many lenders out of business, my view on that is if these lenders cannot operate in an ethical manner then they have no place in our society - if enforcing them to work in a way that does not push people into spiralling debt means they cannot exist, then so be it."

The Scottish debt advice company Trust Deed Scotland, who in 2011 gave free debt advice to thousands of people in Scotland, has reported several times on the dangers of using Pay Day Loans and an advisor for the organisation said "Short term financial fixes such as Payday loans have caused misery to thousands of Scots and we are aware that many people are using them to stave off debt collectors and multiple overdue charges. We appeal to anyone in this position to sit down with a qualified money advisor and look over their finances to find a more appropriate way of dealing with debt.

You can get free impartial debt advice from your local Citizens Advice Scotland branch and most local authorities offer a similar Money Advice service in Scotland."

If you are struggling with debt, need urgent help and live in Scotland, you can get instant and confidential advice by calling Trust Deed Scotland on 0141 221 0999.

Your Employment Status --SELECT-- Employed Unemployed Self-Employed Retired Student Your Total Unsecured Debts --SELECT-- £1,000 £2,000 £3,000 £4,000 £5,000 £6,000 £7,000 £8,000 £9,000 £10,000 £11,000 £12,000 £13,000 £14,000 £15,000 £16,000 £17,000 £18,000 £19,000 £20,000 £21,000 £22,000 £23,000 £24,000 £25,000 £26,000 £27,000 £28,000 £29,000 £30,000 £31,000 £32,000 £33,000 £34,000 £35,000 £36,000 £37,000 £38,000 £39,000 £40,000 £41,000 £42,000 £43,000 £44,000 £45,000 £46,000 £47,000 £48,000 £49,000 £50,000 £51,000 £52,000 £53,000 £54,000 £55,000 Over £55,000 This includes unsecured loans, credit cards, council tax arrears, bank overdrafts etc.

Note - student loans cannot be included in a Trust Deed. Your Monthly Net Income This is your monthly take home pay including any other income

Example
Take home pay £1200
Child tax credit £200
Total net income £1400 Your Monthly Expenditure This includes all rent or mortgage payments and all other fixed outgoings that you pay each month.

Excluding your payments for your unsecured debt. Are You A Homeowner? --SELECT-- Yes No

(Homeowners) Estimated Equity None Don't Know 5000-10000 11000-20000 21000-30000 31000-40000 50000+ Equity Example:
Mortgage - 72k
House Value - 80k
Your Equity - £8000

Dont worry if you don't know your equity.
Just call us on 0141 221 0999

Your Nearest City --SELECT-- Glasgow Edinburgh Stirling Perth Dundee Aberdeen Inverness We have a network of Trust Deed providers throughout Scotland

Your location will help us recommend the best providers.

Title --SELECT-- Mr Ms Miss Mrs Other First Name Last Name Email Address Phone Number Why Do We Need Your Phone Number?

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Your privacy is important to us. Your Details are held in the strictest of confidence and we will only request information required to find your best solution. Your details will NOT be shared with third parties.

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