It pays to do your research when tackling debt worries
ALL the statistics seem to show there are more Scots in debt than ever before.
That would make you think that the numbers taking advantage of a Debt Arrangement Scheme (DAS) would have increased, too.
But figures from the Accountant in Bankruptcy show a reduction in the use of a DAS over the last two years.
There is no question that the Scottish Government scheme offers an effective way to get out of debt.
It allows you to repay all of the money you owe while hopefully not putting too much pressure on monthly budgets.
Part of the problem seems to be that there are so many other options available.
It may be that some of the companies proposing these other options to their clients are doing so because there is more money to be made that way than there is if they propose a DAS as a solution.
When you’re seeking a solution to a debt problem, you need to be sure you find one that suits you best – and not the one that best suits the company selling it to you.
You should also ensure that the people giving you advice are not charging you for that help.
The other thing you need to do is question the solutions that you are being offered until you are sure that they are correct for you.
You need to take your time before making a decision.
Alan McIntosh, a project manager at Govan Law Centre in Glasgow, said: “Like with other financial products, it would be wiser to shop around, cross-reference the advice you are receiving. And ask your lenders for some breathing space.
“There are excellent independent, reputable sources of online advice, such as the National Debtline Website.”
Alan also has a warning for those who receive unwanted telephone calls. He added: “People should also never take advice from anyone who cold-calls them as reputable agencies in the private and public sector won’t do this.
“The Information Commissioner’s Office have now ruled against this, so anyone still doing it is unauthorised to do so.”