Debt Consolidation Scotland

Alternatives to Debt Consolidation Loans

Trust Deed Scotland do not offer debt consolidation loans. Therefore we cannot give advice on where to get a consolidation loan from, or on the pros and cons of any lender who you may approach for a loan to consolidate your debts.

We instead offer tailored debt advice and alternative formal Scottish debt solutions. The solutions we do offer help people in Scotland to consolidate their debts without borrowing money from anyone. An individual can still consolidate all of their debt into one reduced, affordable payment per month.

Every year thousands of people use either a Protected Trust Deed or the Debt Arrangement Scheme (DAS) as an alternative to a debt consolidation loan in Scotland.

We are a leading provider of both solutions but also give advice on other alternatives, including Sequestration, which is Scotland’s equivalent of Bankruptcy.

What is a Debt Consolidation Loan?

Debt consolidation loans combine all your existing debts into a single debt consolidation loan, with reasonable repayments, freeing up your income and enabling you to spend more money on the things you really need.

Unlike a Trust Deed or other formal Scottish debt solutions, with a debt consolidation loan you would repay your debts in full and interest would be added to your balance but this is often lower than your existing rates and your repayments would be significantly less.

You can find out more about whether debt consolidation is right for you on our blog or look at other Scottish Debt Solutions such as the Debt Arrangement Scheme (DAS).

Debt Consolidation Loan advice is not a service that Trust Deed Scotland can help you with due to the permissions required to be able to offer credit.

How do I Consolidate Debt Without Borrowing?

If you are struggling with unaffordable debt, you can consolidate all your debt without further borrowing or without needing credit checks on yourself to apply for credit.

You will reduce your debts into one manageable, affordable repayment.

Depending on your circumstances, you can typically repay all debt included within the plan after a period of 48 months, enabling you to rebuild your credit thereafter. Find out more about Protected Trust Deeds and other formal debt solutions available to Scottish residents.

Can I Consolidate Debts Without Getting a Loan?

Yes. It’s a misconception that you need to borrow further funds to consolidate your debts.

Trust Deed Scotland^® offer alternative solutions such as Trust Deeds and Debt Arrangement Schemes.

On a call with a member of our debt advice team, our experienced debt advisers will give you the advantages and disadvantages of these solutions and provide you with tailored debt advice on how these may affect you.

Ultimately, our aim is to give you informed advice that lets you understand the types of solutions you may be eligible to apply for and with this knowledge, you can then make an informed decision on what’s right for you.

We would never recommend that you choose a formal debt solution over a debt consolidation loan as this a decision that shall always remain your own.

All debt advice offered is completely confidential and without obligation.

I Don’t Own A Home Can I Consolidate My Debts?

Yes. Consolidating debts using a solution such as a Trust Deed, or Debt Arrangement Scheme is made possible for homeowners and people who rent privately, or via a local council or housing association.

Debt consolidation loans tend to be available in the form of a secured loan against your property, or sometimes a logbook loan can be secured on a vehicle.

However, if you are a homeowner, you do not only have the option of a secured loan, both Trust Deeds and Debt Arrangement Schemes are possible for homeowners also.

Is a Debt Consolidation Loan the same as a Payday Loan?

No. A payday loan is a short term measure used to get people through a short term cash flow situation.

Debt consolidation loans tend to be used to clear multiple debts of a higher amount.

A guarantor loan should only be considered where the conditions are right, and where both the parties in the agreement know what they’re getting into and have been correctly advised. More importantly, the person who receives the finds should be accurately assessed for affordability.

Can I Consolidate Debts with a Poor Credit Rating?

Yes but be careful of consolidating debts using ‘bad credit’ loans as they typically carry high-interest rates.

Consider that there may be alternatives that could work out better for you, depending on your circumstances.

In Scotland, Protected Trust Deeds and alternative debt solutions such as the Debt Arrangement Scheme can reduce creditor contact, freeze interest & charges and potentially stop enforcement action against you.

Call Trust Deed Scotland on 0141 221 0999 for tailored debt advice now.

Are Formal Debt Solutions an Alternative?

When considering debt consolidation in Scotland and all methods of doing so, Trust Deeds and the Debt Arrangement Scheme (DAS) can be an effective way of helping you manage unaffordable debts.

Sequestration, the Scottish equivalent of bankruptcy, may be an effective way for you to clear your debts also.

While Trust Deeds and other formal debt solutions are a good solution for some people, they are not right for everybody and there may be other suitable debt management solutions for you other than a formal debt solution, or a debt consolidation loan.

You can find out more about How A Trust Deed Works and other alternatives to debt consolidation loans.

You should call us on 0141 221 0999 for tailored debt advice.

Our non-judgemental advisers have helped over 25,000 people and that advice includes all other debt management techniques including the Debt Arrangement Scheme.

Debt Help In Scotland – Free downloadable guide

For a more detailed description of the types of debt consolidation loan alternatives that we can offer, including advice on the availability of debt help in Scotland, you can download our free debt guide.