Tag Archives: scottish trust deed

Rent Arrears – Your rights – How we can help

Rent Arrears Problems

It may be distressing to get into rent arrears. But don’t disregard the situation. You might end up losing your home if you do not take action to pay back what you owe.

To find out what you can do to stop yourself getting evicted for rent arrears, read this blog fully.

If you are struggling with your Rent payments you should firstly contact your housing, Council or Landlord. Explain to them your situation and arrange a repayment plan or a payment arrangement date.

Rent Arrears – Talk To Your Landlord

It’s understandable that you would be afraid to tell your landlord or agent that the rent will be late.

But before you actually fail to pay up, it is far better to get the issue out in the open.

When you’re actually talking to your landlord:

Explain why the rent will be late and ask for some additional time.
To help ensure that it won’t happen again, be clear about what you’re doing to address the issue.

Identify the issue and map out a plan

It’ll be clear, in some situations, why you have a problem.

Maybe your earnings or expenses have unexpectedly changed for the worse.

For instance, because you lost your job or because your partner moved out and stopped contributing to the rent.

In other examples, it may simply be that you live beyond your means. You’ll need a strategy either way.

It could lead to eviction and a poor reference from your landlord if your rent is consistently late.

Scottish Trust Deed Free Debt Help

Scottish Trust Deed Free Debt Help

Where to get free help and advice

You are in the right place for free help and advice on all of your debts, including rent arrears. Solutions Scotland have hundreds an housands of enquiries about debt help every month.  With over 70 five star reviews on Google, you will see why when you enquire with them. They offer multiple solutions that will be suitable for you to become debt-free. The most popular solution is their Protected Trust Deed. Scottishtrustdeed.info also specialise in this solution (hence the name)

What is a Protected Trust Deed?

A Protected Trust Deed is only available to Scottish Residents who have a minimum amount of £5,000 worth of debt. The Trust Deed will see you become debt-free in just 48 months whilst only paying a small percentage of your debts back. With a Protected Trust Deed you will receive the following benefits: 

  • There are no setup fees! 
  • Freezes interest & charges!
  • Legally binding so creditors can’t back out!
  • Stops all contact from your creditors!
  • Stops wage arrestments or bank arrestments!
  • Writes off up to 75% of your debt!
  • Can include debts from your local council, rent arrears, DWP & HMRC!
  • Can be debt-free in four years!
  • Keep your home & car
  • Comes off your credit file latest six years from starting!

How do I apply for a Protected Trust Deed?

You will firstly have to contact us on Facebook by clicking here or visit our contact page here. Once you contact us we will give you a phone call and we will discuss your situation. We will then be able to tell you if you are eligible for the Protected Trust Deed. IF you are not eligible we offer multiple Debt solutions such as a Debt Arrangement Scheme.

Rent Arrears

Debt Free – Sort your debts before Christmas!

Debt Free – Can I really be free from my debts before Christmas?

Debt Free for Christmas? Yes please! Scottishtrustdeed.info can make all hassle from creditors and sheriff officers disappear before Christmas. Christmas is a time for family and celebrations. Don’t let the creditors and sheriff officers be the Grinch by letting them ruin your holidays. Our Protected Trust Deed is one of the ways you can stop all of the contact and hassle! You will not be completely free from your debts for Christmas, You will be free from the debt hassle provided by creditors/officers. By the time Christmas comes, you will be:

  • Uncontactable from ALL Sheriff Officers
  • Uncontactable from ALL Creditors 
  • Stress-Free from any debts you have
  • In an AFFORDABLE re-payment plan  
  • On the Journey to becoming Financially stable  

Can I really become Debt Free and Uncontactable from Creditors?

Yes, Once you have entered your payment plan (PTD) or (DAS) creditors cannot contact you. If the trust deed is protected, creditors CANNOT touch any assets. For it to be protected, the MAJORITY of your creditors need a binding agreement in place – one that everyone is happy with. If the deed is not ‘protected’, your creditors could still legally recover the money you owe them, anyway they can. They could take you to court.

Debt Free - xmas

Why it’s important to sort your debts BEFORE Christmas

Did you know Of those who admit borrowing money to cover Christmas at least once, 25% told us that they borrow from friends or family and 26% dip into their arranged overdraft. 10% of respondents say that they use a payday loan to pay for Christmas, and 10% take out a bank loan for the same purpose. Christmas is the most popular holiday people borrow money for. If you are already in debt and thinking of increasing the total debt amount, we would advise against it. Deal with your debts before Christmas and experience what it’s like not having to worry with creditors.

Note:

The survey was conducted via Google Consumer Surveys between 24th-25th Nov 2016 with 1000 UK respondents, all aged 18-44 years. (provided by drafty)

HOW TO GET STARTED!

Firstly, to get started with a Protected Trust Deed you will need to have a debt level of £6,000+ that is the minimum amount required to be accepted for a protected trust deed. Secondly, you would have to reach out to us with your contact details. You can send us those details by using our website form click here to be directed.

  • Do you need a Scottish Protected Trust Deed?

     

    Are you a Scottish resident? Have over £5,000 of unsecured debt? Willing to pay a small percentage of your debts back to be debt-free in just 48 months?

    A Scottish Protected Trust Deed could be for you!

    • There are no setup fees! 
    • Freezes interest & charges!
    • Legally binding so creditors can’t back out!
    • Stops all contact from your creditors!
    • Stops wage arrestments or bank arrestments!
    • Writes off up to 75% of your debt!
    • Can include debts from your local council, rent arrears, DWP & HMRC!
    • Can be debt-free in four years!
    • Keep your home & car
    • Comes off your credit file latest six years from starting!

    Debt Free 2019 Scottish Trust Deed

    Debt Free 2020 Scottish Trust Deed

Wage Arrestment affecting you? We can help!

Wage Arrestment information

A Wage Arrestment is also known as an Earnings arrestment means that a percentage of the debtor’s earnings will be taken by their employer to settle the outstanding debt balance. Before an Earnings arrestment can happen a County Court Judgement will have been granted by the courts. An attachment of earnings can only occur if a debtor has missed one or more payments on a County Court Judgement. If the debtor has fallen behind with a payment then the court can use an attachment of earnings to recover the debt for the creditor.

Is a Wage Arrestment common?

Yes. Wage Arrestments are very common in the United Kingdom. It’s possible to have more than one Arrestment. Depending on how much you owe and who you owe. This will play in a part and may result in a Conjoined earnings arrestment.

This can happen when you owe more multiple people money, and several have arrested your wages at the same time. It does not mean you pay more. Your employers pay the money over to the sheriff clerk in your local sheriff court, who splits it up and distributes it to the creditors.

Wage Arrestment

How can we stop Wage Arrestments?

If you have debts totalling together to £5,000 you may qualify for a Scottish Protected Trust Deed which can have the following benefits;

  • Pay what you can afford each month for four years and be debt-free!
  • Stop all legal action from your creditors
  • Stop all action from Sheriff Officers, including arresting your earnings!
  • Freeze all interest & charges
  • No setup or monthly management fees!
  • Stop all contact from your creditors
  • Write off all debt that is not affordable
  • Keep your home & car!
  • Keep your contract phone & a normal bank account!

(Please note this may affect your credit file)

We have multiple debt solution plans, Our most popular being the Trust Deed. A Protected Trust Deed is an affordable payment plan. One of our agents can tell you how much you are required to pay per month. This amount is calculated from your income and expenses/assets. During the Trust Deed period, no creditors or sheriff officers can contact you. Depending on your circumstances you are typically debt-free in four years. As stated above the Trust Deed comes with multiple benefits. The main con is that it may affect your credit file.

Check your eligibility

The minimum amount of debt for a Trust Deed is £5,000. You can apply for a Protected Trust Deed by clicking here. If you wish to contact us on our social media platforms you can press here to be directed to our Facebook. Visit the Contact us page on our website and fill in the information required and we will be in contact with you. We will respond during our office hours are Monday – Thursday. 09:00 – 20:00. Fridays 09:00 – 17:00.

Scottish Trust Deed Free Debt Help

Scottish Trust Deed Free Debt Help

Scottishtrustdeed.info offer free debt advice and financial help. You will not be charged for using our services, However, we may receive a fee for the services provided.

Council Tax In Arrears – What Happens Now?

If you can’t pay your council tax

Missing payments puts you into Council Tax Arrears. Your council may allow smaller payments to settle the amount. It’s important that you contact your council immediately to explain your situation regarding your council tax payments.

It’s highly likely that your council will take you to court if you ignore the arrears, you may also have to pay court fees. Court Fees can add hundreds to your bill.

You’ll get a reminder from the council around 14 days after your missed payment.

Your debts are cleared if you pay within the 7 days after the reminder, and you can continue paying your usual instalments.

If you have other debts alongside your council tax you would still need to pay the council tax first. Tax arrears are classed as a  ‘Priority Debt’. Depending on your debt amount you could be eligible for a Trust Deed. 

Scottish Trust Deed Free Debt Help Scotland council tax

Scottish Trust Deed Free Debt Help Scotland

What if I don’t pay my council tax within the 7 days of the reminder?

Councils can send up to two reminders. If its within 7 days of the final reminder and you haven’t paid, you’ll lose the ability to pay your bill in instalments. Your local council will send you a letter telling you to pay all your Council Taxes for the year within 7 days. If you are unable to pay all your council tax, it’s important you contact the sheriff officers. Sherrif officers can help arrange a payment plan.

council tax stress

 Will this affect my wages?

Short Answer Yes. Wages are affected it’s possible that one’s wages can be arrested. A Wage/Earnings Arrestment require your employer to deduct money from your salary to pay back your debts. If you are struggling with an existing earnings arrestment Contact us today for free, confidential advice. Our expert advisers will help you decide upon the best course of action for you and will let you know how the earnings arrestment could be lifted.

council tax wage arrestment

What is a Wage Arrestment?

As touched on previously, wage arrestments will instruct the debtor’s employer to deduct money from their pay to settle your debts. The council asks your employer to take regular deductions from your wages to repay the debt you owe. Your employer has a limited time to put the arrestment into practice. The deductions come from your ‘net income’. This means the income you have left after paying your tax and National Insurance. An earnings arrestment cannot be used to take money from self-employment if you are a sole trader.

Can I stop the Wage Arrestment?

You can stop the wage arrestment if you correspond with the council’s reminder about your arrears. It’s important to keep track of your owed payments. ScottishTrustDeed.info can help you with your financial difficulties. ScottishTrustDeed.info offer multiple debt solutions and free debt advice. They’re contactable here.

Scottish Trust Deed Information | Free Debt Help Scotland | Trust Deeds in Scotland | Council Tax Debt Help |

Scottish Trust Deed Information | Free Debt Help Scotland | Trust Deeds in Scotland | Council Tax Debt Help | (Scottishtrustdeed.info do not charge their clients for free advice, however, we may receive a charge)

 

Update from the Joint Administrators of Wonga.com

Wonga have been famous over the years, often displaying TV adverts.

Payday lender Wonga.com is now in administration after failing to cope with customer compensation claims.

Wonga.com was well known for offering short-term, high interest credit (Payday loans) after launching here in the UK in October 2007.

Wonga got their name well known across the UK by sponsoring football teams, the London Underground, various TV adverts & shows, all of which were heavily criticised.

Wonga charged interest rates, which can equate to an Annual Percentage Rate (APR) of 1,509%, had been widely criticised. Wonga had said they believe APR is a poor measure of the true cost of short-term loans. As of April 2016, a loan of £100 over seventeen days (Wonga’s average loan term) required £113.60 to repay.

Wonga.com went into administration on 30th August 2018 after struggling to keep up with customer compensation claims, with now over 40,000 complaints received.

The administrators (Grant Thornton), are now dealing with winding down the company & have sent Wonga.com customers an email 8th May 2019 to advise on where to submit a claim –

“Update from the Joint Administrators of Wonga


Dear

Following a court hearing on 25 April 2019, the Joint Administrators of WDFC UK Limited (trading as Wonga.com) include links below to two statutory notices that are being provided to you as someone who has submitted a claim or may in due course.

1. Notice of intention to declare a dividend

This can be accessed by the link below: 
WDFC UK Limited – Notice of intention to declare a dividend 

Please note that in order for the Joint Administrators to set a final date for those who are owed money to submit a claim, they must issue the notice in the link above. As you will see from the notice, all claims must be submitted by 30 September 2019 or they may not be considered for payment. It is expected, unless you receive a notification to the contrary, that the Joint Administrators will make a payment to accepted claimants within four months of 30 September 2019, i.e. by 30 January 2020. 

For those claimants who have already submitted a claim, no further action is required from you at this stage and the Joint Administrators will be in touch when they are ready to assess your claim. 

If you have not yet submitted a claim and believe you have been sold an unaffordable loan by Wonga, as per our previous correspondence, all customers should make a claim through the Online Claims Portal by clicking on the button below. 


Submit your claim now

Please be aware, if successful, the payment you receive will be considerably smaller than your accepted claim amount. This is because it is expected that the total value of all accepted claims received will significantly exceed the money available to be shared out. The money available to be shared out will not be known until all of Wonga’s assets have been sold or realised and certain costs and deductions have been taken into account.

2. Notice of extension of administration

This can be accessed by the link below: 
WDFC UK Limited – Notice of extension of administration 

An Administration is typically a 12 month process. As explained above, it will not be possible to collect in, assess and pay money to claimants within that time period, as such the Joint Administrators have had approval from the Court to extend the Administration by a further 12 months (to 30 August 2020) and the statutory notice above confirms this. 

No further action is required by you in respect of this notice.

If you have any questions or require any further information, please visit our FAQs on our website.

Kind regards,

The Joint Administrators

wonga.com 
customercare@wonga.com

Debt Free 2019 Scottish Trust Deed
Debt Free 2019 Scottish Trust Deed

With the dreaded Christmas & New Year period over, the bills are starting to hit home with many Scottish residents.

With many dreading the end of January bills dropping that bring to reality that major over spend to get the prezzies & one to many drinks in over the festive period here at Scottish Trust Deed we are here to help!

How?

Here at Scottish Trust Deed we offer Scottish residents the chance to get debt free using government legislation known as a Scottish Protected Trust Deed.

What benefits does a Scottish Protected Trust Deed offer?

Be debt free in just 48 months!

Write off up to 75% of your unsecured debts

Keep your home & car

Stop creditors contacting you

Stop legal action or any arrestment of earnings

Freeze all interest & charges

Only stays on your credit file for six years from when it starts

Can include debts to your local council, HMRC & DWP

Why not get in touch today & let us lift the weight off your shoulders with a legally binding plan to get on top of your debts?

Give us a call – 0141 846 0113

Leave your details for us to give you a call at a suitable time – Click here

Email us if you don’t have the time to speak – enquiries@solutionsscotland.co.uk

Struggling with debt scottish trust deed

“My overdraft limit was the same as my salary so whenever I got paid it Just paid my overdraft” – Millions can’t get out of their overdraft debt. Scottish Trust Deed Info | Free Debt Help Scotland

Why are millions of people in the UK struggling to get out their Overdraft & become debt free?

According to Stepchange 2.1 Million people across the UK were constantly in their overdraft throughout 2016, with 81% of those individuals using their overdrafts to buy food, livings costs or household bills.

Why are overdrafts the most commonly known credit facility in the UK?

Most individuals we speak to here at Scottish Trust Deed do not classify their overdraft as debt when gathering their information on what is owed, why is this?

The most common feedback on overdrafts is that it is paid back each time that individual is paid but just like every other debt it comes at a cost & each time there is fees it reduces that individuals disposable income every time the fees are charged.

Overdrafts are in place by banks and building society’s as a way of short term lending, however many individuals in Scotland are now seeing this as a way of long term lending which can become very costly.

How much do overdrafts cost?

Stepchange (debt charity) have claimed in one report the average overdraft in 2016 was £1,722, so we have compared three popular banks in Scotland to see just how much they are currently charging on their overdrafts (September 2018).

Using the Bank of Scotland ‘s overdraft fee calculator which can be found here – https://www.bankofscotland.co.uk/bankaccounts/overdraft-assessment/fee-calculator.asp

Bank of Scotland state that with a current account borrowing £1,722 within their overdraft facility each month with costs as much as £77.77 per month!

Bank of Scotland Overdraft Calculator Scottish Trust Deed

Bank of Scotland Overdraft Calculator Scottish Trust Deed

Using the Royal Bank of Scotland‘s overdraft fee calculator which can be found here – https://personal.rbs.co.uk/personal/current-accounts/overdrafts/overdraft-calculator.html

Royal Bank of Scotland state that with a select current account borrowing £1,722 within their overdraft facility each month with costs as much as £32.73 per month!

Royal Bank of Scotland Overdraft Calculator Scottish Trust Deed

Royal Bank of Scotland Overdraft Calculator Scottish Trust Deed

Using the Santander Bank‘s overdraft fee calculator which can be found here – https://www.santander.co.uk/uk/current-accounts/understanding-overdrafts

Santander state that with a 1|2|3 current account borrowing £1,722 within their overdraft facility each month with costs as much as £36.00 (this includes account fee at 35 per month) per month!

Santander Bank Overdraft Calculator Scottish Trust Deed

Santander Bank Overdraft Calculator Scottish Trust Deed

If you find yourself in a constant struggle with debt, why not find out if you qualify for a Scottish Protected Trust Deed?

Give us a call – 0141 846 0113

Leave your details on our site for us to get in touch – Click Here

Email us – Click Here

Wonga is assessing ‘all options regarding the future of the group’. Photograph: David Levene for the Guardian

If payday lender Wonga collapses what will it mean for customers? The Guardian | Scottish Trust Deed Info | Free Debt Help Scotland

If payday lender Wonga collapses what will it mean for customers?

Your rights explained over loans and compensation claims as the firm assesses its options

Britain’s biggest payday lender, Wonga, is teetering on the brink of collapsefollowing a surge of customer compensation claims in recent weeks that could cause it to call in administrators.

The flood of claims relates to loans taken out before 2014, when Wonga was the poster child for outrage in the payday lending industry that resulted in rules capping the cost of borrowing.

The short-term loan provider says it is assessing “all options regarding the future of the group” and has reportedly lined up the accountancy firm Grant Thornton to handle a potential administration.

I have a Wonga loan. Should I keep making repayments?

Wonga is not currently in administration – so the company is keen to stress that it is business as usual. Banking works via people borrowing money and paying it back (with interest) – and nothing changes in that respect because a lender is struggling. If you are considering trying to get away without paying, be warned. Wonga’s website points out: “The first time you miss a payment, you’ll have three days to repay before we charge you a missed payment fee of £15.”

If Wonga goes into administration will I still have to pay my existing loan back?

 Wonga’s main assets are the loans it makes. Photograph: Alamy Stock Photo

Wonga’s main assets are the loans it makes. Photograph: Alamy Stock Photo

Yes. Any administrator appointed will be acting in the interests of the company’s creditors. That means they would seek to get the best financial result possible for those owed money, principally by selling Wonga’s assets.

Wonga’s main assets are the loans it makes and an administrator would look to sell these to another company, which would want its money back.

I have made a compensation claim against Wonga. What will happen now?

If Wonga does not go into administration then your claim remains in the current process, which involves customers either agreeing a settlement with the company or having a claim assessed by the Financial Ombudsman Service (FOS).

If the company does go into administration while your agreed claim has yet to be paid, you will join the list of creditors.

The FOS has warned that if Wonga goes into administration it will not make any further assessments for compensation – and nor are customers entitled to claim against the Financial Services Compensation Scheme (FSCS).

I was thinking of making a compensation claim. Can I still do so?

Yes. The company is still in business.

However, claims go through a process and are usually settled in a matter of weeks at best. If Wonga goes into administration before a settlement has been reached – or before the FOS has ruled that compensation is due – then customers are unlikely to receive much if anything.

I was thinking of taking out a payday loan. Should I still consider Wonga?

Aside from the well-rehearsed arguments about whether or not to take out payday loans (on Monday Wonga’s website was advertising a short-term loan at an annual percentage rate (APR) of interest of 1,509%) the latest news about the company’s struggles should not particularly affect that choice. The company is still operating and is making loans. If Wonga collapses, those loans will likely end up being owned by another lender.

Please note this article originated from – https://www.theguardian.com/business/2018/aug/28/if-payday-lender-wonga-collapses-what-will-it-mean-for-customers

Lowell Portfolio Debt Scottish Trust Deed Info Free Debt Help Scotland

Lowell Portfolio Debt | Don’t Know who they are? | Don’t know why this company is constantly chasing you for money owed? | Scottish Trust Deed Info | Free Debt Help Scotland

Have you received correspondence from a company going by the name of Lowell Portfolio or Lowell Financial?

Don’t know who they are or why they are chasing you for money owed to them?

If in the past you have had debts that you have not paid then you may have had contact from the Lowell Group Debt Collection.

Lowell trade under various names where their business model is to buy unpaid debts from other companies such as Credit Cards, Store Cards, Mobile Phone bills, Short Term loans, Bank Account fees, Overdrafts, Personal Loans, Catalogues etc…

They will then attempt to collect the debt via email, text messages, letters, phone calls & court action. They are probably the most common buyer of debts in the UK at the moment.

Lowell Portfolio & Lowell Financial’s contact details;

Telephone Number – 03335565550

Email – support@lowellgroup.co.uk

Address – PO BOX 1411, Northampton, NN2 1BQ

Website – https://www.lowell.co.uk/contact-us

 

People aged 25-34 are three times more likey than those over 55 to use credit to pay for essential purchases such as food CREDIT: CHRIS RATCLIFFE/BLOOMBERG

Young people owe five times more than older consumers, as unsecured debt mounts | www.telegraph.co.uk | Scottish Trust Deed Info | Free Debt Help Scotland

Young people owe five times more than older consumers, as unsecured debt mounts

Younger borrowers hold five times the unsecured debt of their older counterparts, and are three times more concerned about their ability to repay their debts, analysis has revealed.

Unsecured borrowing, which refers to loans that are not backed by any form of collateral, has grown at 11pc in the past year – the fastest rate in 15 years – to £300bn, according to accountancy firm PwC.

This has left younger people (aged 25-34) fearful about meeting their repayment obligations and also three times more likely than those aged over 55 to use credit for essential purchases such as food.

The average unsecured debt for those aged 25-34 was £11,485, the analysis found, five times that of those aged over 55, who had an average debt level of £2,075. This higher level of debt might explain why 28pc of younger people were worried about meeting future debt repayments, versus 10pc of  consumers who were 55 plus.

There was also a clear divide between renters and home owners’ use of unsecured borrowing shown in the analysis, with renters almost twice as likely to use credit to fund essential purchases, compared to people with mortgages.

 

Use regions/landmarks to skip ahead to chart and navigate between data series.

Unsecured debt in 2017, percentage growth and value in billions. source: Bank of England, PwC analysis

Unsecured-Debt-in-2017-Figures-From-Bank-of-England

Unsecured-Debt-in-2017-Figures-From-Bank-of-England

These figures show a marked disparity in levels of unsecured borrowing between generations and come amid reports that Philip Hammond will seek to correct economic inequality with a “tax on age”that offers younger workers in their 20s and 30s a cut in their National Insurance contributions by squeezing pension relief for older earners.

The analysis of  consumer credit also follows calls from the Bank of England for high street banks to tighten criteria for unsecured lending, which appeared to have been heeded last week. A survey from the UK’s central bank revealed that access to unsecured credit fell at the fastest level in past three months since 2009.

This shift is reflected in PwC’s general outlook for unsecured borrowing, which is projected to grow far more slowly over the next two years; at a rate of 7pc in 2018 and 5pc in 2019. This would mean overall household debt would reach £340bn, or around £12,500 per household by 2020.

Simon Westcott, consumer credit leader at PwC  explained that although households reduced their borrowing by nearly 25pc (excluding student loans) in the wake of the financial crisis, that attitude has shifted as macro-economic conditions have improved.

These figures show a marked disparity in levels of unsecured borrowing between generations and come amid reports that Philip Hammond will seek to correct economic inequality with a “tax on age”that offers younger workers in their 20s and 30s a cut in their National Insurance contributions by squeezing pension relief for older earners.

The analysis of  consumer credit also follows calls from the Bank of England for high street banks to tighten criteria for unsecured lending, which appeared to have been heeded last week. A survey from the UK’s central bank revealed that access to unsecured credit fell at the fastest level in past three months since 2009.

This shift is reflected in PwC’s general outlook for unsecured borrowing, which is projected to grow far more slowly over the next two years; at a rate of 7pc in 2018 and 5pc in 2019. This would mean overall household debt would reach £340bn, or around £12,500 per household by 2020.

Simon Westcott, consumer credit leader at PwC  explained that although households reduced their borrowing by nearly 25pc (excluding student loans) in the wake of the financial crisis, that attitude has shifted as macro-economic conditions have improved.

Only one in three of consumers could correctly estimate the costs and repayments that came with a credit card CREDIT PHILIPPE WOJAZERREUTERS

Only one in three of consumers could correctly estimate the costs and repayments that came with a credit card CREDIT PHILIPPE WOJAZERREUTERS

“[Since 2009] despite the uncertainty created by political upheaval, a number of macro-economic factors have combined to create a climate of rising consumer confidence and borrowing,” said Mr Westcott.

However, this change in consumer confidence had not been matched by improved levels of financial literacy with only one in three respondents able to correctly estimate the costs and repayments associated with a credit card, and just 4pc able to do likewise for pay day loans.

“People’s perception of the cost often underestimated the reality. For example, across all age groups and unsecured credit types, only around a quarter of our UK sample correctly estimated the true cost of borrowing on everyday lending products,” Mr Westcott said.

This gap in understanding could leave borrowers exposed if they fail to budget for higher repayment levels if interest rates rise, as predicted, in the coming months.

The unsecured debt pile of £300bn in the report is significantly higher than the £200bn consumer debt figure reported by The Bank of England in September, as PwC decided to include student loans in its analysis.

The report also noted that while still historically high, at 147pc, the overall debt-to-income ratio for consumers remains well below the 2007 figure of 158pc, seen during the lead-up to the financial crisis.

Please note this article originated from – https://www.telegraph.co.uk/business/2017/10/16/young-people-owe-five-times-older-consumers-unsecured-debt-mounts/

If you would like to know more or want to check your eligibility for a Scottish Protected Trust Deed, please do not hesitate to get in touch;

Call us – 01418460113

Email us – enquiries@solutionsscotland.co.uk

Leave your details for us to give you a call/email – Click here