MANAGING DEBT

Transcription

1 MANAGING DEBT

2 Introduction Debt, or credit, is a fact of modern life. Most of us make sensible use of credit in some shape or form. Sometimes, perhaps because of sickness or losing a job, people end up struggling to make the payments on time. If you have a problem with debt then this booklet will help you to get free and impartial advice from a trained money adviser. Your money adviser will help you find the right path towards solving your problem. For many people the Debt Arrangement Scheme will be that path. This booklet tells you more.

3 Worried about debt? In a muddle with money and worried about debt? Whether large or small, debts can cause misery and feel like a weight around your neck. But you re not alone. You can lift that weight with the help of free, impartial and confidential money advice. Advice may be all the help you need to make a fresh start. But more is there if you need it.

4 Money advice A trained money adviser is at work somewhere near you. Find out where by getting in touch with an adviser through one of the contacts listed on the back page. Your money adviser will tell you about: The paths you can take when you need more than advice The best path for you Increasing your income Spending your money wisely

5 Dealing with debt There are two main paths that you can take when you need to deal with problem debt. Debt management The first path is the one to take when you can pay your debts, but you need more time or protection from your creditors. When you take the first path you are managing your debts. This can be tough in the short term, but is much better for you in the long term. The Scottish Executive has introduced the Debt Arrangement Scheme to make it easier for you to manage your debt. Debt relief The second path is the one to take when you have no hope of paying your debts. You need debt relief. Debt relief works well in the short term, but is not a path to take lightly. It has a long-term effect and that can be severe. Your money adviser can tell you more.

6 Debt arrangement scheme The Debt Arrangement Scheme is the free debt management tool introduced by the Scottish Executive in November DAS can help if you can t pay the bills as they come in and: your creditors won t leave you in peace, or you re struggling with lots of small payments, or difficult creditors are holding up a fair deal, or you re being taken to court, or your property is being sold, or your wages or bank account are being arrested, or your home is at risk. Your money adviser will help you decide if DAS is the right path for you.

7 How DAS can help With DAS your debt payments are fixed at the level you can afford. Your creditors get a fair share of what you have, and can t insist that you stick to the payments they have asked for. Most people with problem debt can use DAS. A payment programme must be fair and reasonable, but there is no limit on: how much, or how little, debt you have how long it will take you to pay the amount of each payment. Taking part in a DAS debt payment programme means you: are protected from court enforcement and bankruptcy are protected from bankrupty should be able to keep your home can pay smaller amounts over a longer time make a single payment, rather than lots of little payments can pay in a place or way that suits you get support while you are paying could pay less, if you fall ill or your income drops learn how to manage your money avoid the bad effects of using debt relief. Above all, using DAS to manage your debts gives you peace of mind.

8 Contact DAS Administrator Omne House 11 Riverside Way Riverside Business Park Irvine KA11 5DP Phone: Website: Other contacts Citizens Advice Scotland 1st Floor Spectrum House 2 Powderhall Road Edinburgh EH7 4GB Money Advice Scotland Suite 306 Pentagon Centre 36 Washington Street Glasgow G3 8AZ Phone: Website: The Scottish Executive Check our website at 00.asp. or contact us for a copy of our leaflet 'Dealing with Debt' at; Scottish Executive Justice Department Floor 2 West St Andrew s House Edinburgh EH1 3DG Phone: Phone: Website: The information in this leaflet is available from the Scottish Executive in other languages and in braille or other formats. w w w. s c o t l a n d. g o v. u k