How to live debt free life 101

Personal debt is one of the biggest problems for hundreds of thousands of Scottish citizens. There have been debt problems since the invention of money, but that has not escalated as it did few years ago when the economy and financial crisis raged everywhere. During those years this issue started to grow with epidemic proportions and has a major impact on Scottish society. As a result the authorities decided to step up and do something about this problem. The result were two government backed debt consolidation programs; the trust deed and the debt arrangement program. Both programs offered real alternative to bankruptcy and so far have helped a lot of people deal with their debts.

Even so those programs are backed by the government they are not directly run by it, but instead independent debt advisory Scotland services. The primary goal of the debt advisory Scotland services is to give viable solutions to people with debts; help them find the optimal solution for their debt problems and implement that solution in practice. Most of the debt advisory Scotland services are specialized not only in managing the government backed programs but commercial available solutions as well. Nevertheless, the trust deed and the debt arrangement program remain the two most popular debt management programs which is quite understandable considering the many benefits from using them. Also, they often are the last resort before bankruptcy.

In order to qualify for some of the two programs the applicant needs to be Scottish citizen, to be full time employed and to have a debt which is over £5.000. With both programs is involved a third person who watches over your interests with the creditors while searching for more convenient ways to pay off the debt. If you option to go with the Scottish Trust Deed you will need to work with authorized insolvency practitioner while if you decide to go with the debt arrangement program you will need to hire money advisor. From the moment they take your case your creditors will work only with them and not you.

The biggest and probably the only downside to both government programs is the fact that their users will walk out of them with incredible low credit rating, meaning they won’t be able to get a loan for some time, at least not one with reasonable interest. On the other hand re-financing which is considered as an alternative to those solutions doesn’t affect the credit rating.