How Debt Advice Scotland Will Help You

There are many different companies to help with debt advice and management. Debt Advice Scotland is just one of those. It is a debt management company and will help you in many ways. However, there are downsides that you will also need to consider to make sure you find the best option for your financial needs.

Help Create a Budget to Get Out of Debt

If budgeting is something that will help you get out of debt quickly, Debt Advice Scotland will help you with that. They want to find the most convenient option for your needs and a way that causes the least harm to your credit rating. They will look into your finances and aid with setting up a budget that you can stick to so you clear your debts and still have a disposable income for everything else.

Help Negotiate Terms

If you are struggling with current terms to your loans, Debt Advice Scotland will help you with that. The company will contact your creditors and look at lowering your loan term, the interest rate added and even look at freezing anything interest being added on. However, this can lead to your credit cards being cancelled. Not all creditors will agree to this but there is more chance than you trying yourself, since you are proving that bankruptcy will be your other option.

Pay Less in the Long Term

With a debt advice company, you could find yourself paying much less in the long term. The company will look at the amount of debt you have and the amount that you can pay each month. This takes into account children, other outgoings and fluctuations in rates and pay. The term is usually set for two to three years and you pay that set amount the whole time. It will not usually clear the full debt and around 40% could be wiped out so you pay much less than you would if you chose to go it alone. This is a completely legal option too so no bailiffs will come to the door.

Affect Your Credit Rating

Debt Advice Scotland do warn that the austerity measures will affect your credit rating negatively. The management plan will remain on your credit file for six years for other lenders to see that you have problems with borrowing in the past. However, you will never be considered as such a high risk compared to someone who has filed for bankruptcy.