EARLY ADVICE CAN SOLVE FINANCIAL WORRIES HELP IS HERE TO TACKLE YOUR DEBTS

In Scotland, record numbers of adults have started the new year with problem debts that have left them struggling to pay for basic outgoings.

Problem debt can often be defined as people who find keeping up with their bills and credit commitments a “heavy burden”. This could mean they have missed bills in the last six months or even just six weeks.

Many people find themselves unable to make ends meet due to factors including low wages, rising cost of living or a change in life circumstances such as divorce, redundancy or bereavement.

A report from the Scottish Government says 14.2 per cent of people in Scotland are experiencing debilitating debt which impacted on relationships, family life and mental health.

Surprisingly though, only 20 per cent of those people experiencing severe debt are likely to seek the free advice that could help them resolve their money worries.

To help make it easier for people to access free debt advice, the Scottish Government has consulted with debt charities and made significant changes to specific debt solutions.

A recent example is the abolishment of charges and fees to enter the Debt Arrangement Scheme (DAS). DAS is a debt solution that stops creditors’ demands and freezes interest available in Scotland, allows people to pay off their debt at an affordable rate over a timescale that suits their circumstances.

Alan Mcintosh, a money adviser and debt blogger says “Problem debt weighs heavily on minds, and intrudes on the happiness and wellbeing of families.”

“When we look at problem debt, we need to see it for what it is: a welfare issue, a mental health issue, a housing issue, a fuel poverty issue. It is vital, therefore, deserves as a social problem.”

“Recent Scottish Government legislation on the Debt Arrangement Scheme has gone a long way towards increasing access to debt advice for people who need it.”

“But it is important people access that help or it will all have been in vain.”

“If people do access it, I believe it will bring a transformational change to their lives for the better.”

When Susan Inglis’ relationship of 10 years broke down, she was horrified to discover her ex-partner had racked up debts of more than £10,000, in her name. Utility bills hadn’t been paid, the car finance had defaulted and the council tax was in arrears.

“I had no idea how bad things were until I found all the hidden or unopened bills,”she

“I was in a panic and thought,‘how will I pay all this back? Will I lose the house? Will I forever be in debt?’it was terrifying because I just wanted the best for my

A relative told Susan to call CAP – Christians Against Poverty – who run a free debt advisory service.

“It’s the hardest phone call I’ve ever had to make, I was so embarrassed, but I knew I had to do something because I had to provide for my little boy.

“But there was no judgment and I was met with pure sympathy and support.”

A key worker came to Susan’s home and together they carefully went through every single debt, taking care not to leave anything out, before coming up with a realistic repayment plan.

The mum explains: “They contacted my creditors and agreed a payment plan. One creditor was only getting a small amount a month but they were happy to accept that because at least I was paying something.”

Susan has been left with enough to manage and now thinks she will be debt-free by the time Albi starts school.

Practical online blog about what to do in a debt crisis. www.advicescotland.com

(Christians Against Poverty) capuk.org or call 01274 760720 for help and support. An adviser will visit you and help you devise a practical plan to tackle your debt issue.

You don’t need to be Christian to get help from CAP.

For free financial help and information, visit your local authority website or contact them directly.