Best Way To Consolidate Debt In Scotland?

If you're experiencing financial difficulties and are assessing your options to repay your debt, you may have considered that a consolidation loan is the best way to consolidate debt for you. But don't discount the options of Trust Deeds , Debt Arrangement Scheme , and alternatives because there are circumstances where one of these debt management tools could provide a more suitable solution. Whilst at first glance the solutions may appear to be similar and share many of the same advantages, fundamentally, they are very different. Consolidating debt usually involves taking out new credit in the form of a Debt Consolidation Loan to pay off existing credit. Extra costs can be involved and to understand the risks, it’s important to get impartial advice before going ahead with your application. Statistically, many people who take out a further debt consolidation loan will end up using credit again. Therefore, they’ll then be repaying debts to more than one company again. If you’re struggling with unaffordable debts at the moment, you may not be able to afford payments to a Debt Consolidation Loan. Examine your income and expenditure to find out what money you have available and make sure you can comfortably afford the repayments. Which option is best for you will be heavily influenced by your personal circumstances. You should, therefore, take time to understand each option, to ensure you come to an informed decision and always seek balanced expert debt advice before committing to any financial product.

Debt Consolidation Example - Loan Vs Trust Deeds

If you are currently paying £636 per month on debt repayments, owe £20,000 and found a loan at 12% APR. This would compare as follows: Loan : Debt Consolidation Loan Required ✓ £20,000 ✓ Term 48 Months ✓ New Monthly Payment £521 ✓ Total Repaid £24,992 ✓ Monthly Debt Repayment Reduced by 18% Trust Deed : Total Debt Included ✓ £20,000 ✓ Term 48 Months ✓ New Monthly Payment £175 ✓ Total Repaid £8,400 ✓ Monthly Debt Repayment Reduced by 61% You may be able to get a debt consolidation loan with a more favourable APR%, or longer term. These may be typically secured against your property. However, if you're already struggling with debt - the APR% may be typically higher. We would always suggest looking at all Scottish debt solutions also.

Debt Consolidation Loan Considerations?

If you think that the best way to consolidate all your debts is a debt consolidation loan, rather than a Trust Deed or other Scottish debt solutions . Always pay your existing debts in full Cut up all your credit cards and cancel previous credit agreements, otherwise, you might be tempted to borrow more money Get free, expert debt advice before going ahead with this option - there may be better ways for you to deal with your debts Where Can I Get Scottish Debt Help? You can get Scottish debt help today with Trust Deed Scotland ®. There are a variety of debt solutions available in Scotland to help deal with your debts, regardless of the minimum or maximum amount of debt that you owe. You can find out more about the solutions by visiting our online debt advice page Or, if you would prefer to speak a qualified debt expert, you can give us a call on 0141 221 0999 to find out more. Any advice offered is free, balanced, and non-judgemental. Find 1000’s of 5* Reviews on TrustPilot . We’re the leading debt relief company in the whole of the UK.

Unsecured Loans Archives - Trust Deed Scotland®

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For more debt advice, tips and guides on debt solution options, and information on how to manage finances – including the latest news in Scotland about trust deeds – keep up to date with our money advice articles here in our debt advice hub.

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