Informal

Do you have debts you are struggling to pay? As a first step, you should seek advice.

Please see debt solutions below for what may be available to you. The following publications give more information about dealing with debt:

Debt solutions

Your money adviser can discuss some of the various debt relief options available to you. These may include:

  • Re-mortgaging your home: This is only possible if you have equity - ie: the value of your property outweighs the amount you owe on your mortgage. When re-mortgaging, you may receive up to the full equity available on your property. You can use the money any way you want, including to pay other debts. Qualifying for a re-mortgage is dependent on your financial circumstances. Re-mortgaging means you will have a higher monthly mortgage payment and usually a longer term mortgage. Your home will be at risk if you do not pay your mortgage. 
  • Personal or secured loan: Can be used for debt consolidation. This means you will have fewer creditors to pay. However, you will have a bigger loan, may have a higher interest rate and may last longer. A secured loan means your property could be sold by your creditors to pay your loan if you default.
  • Debt management plans: These can help you manage your debts and pay them off at a more affordable rate by reducing your monthly payments. However, they don’t offer the protection that statutory debt solutions do and creditors don’t have to agree to them, which means you could still face consequences such as sequestration.

This is not a full list of all options: your money adviser will be able to explain these in detail.  Your credit rating may be affected with all options.

Further advice options

The following organisations can provide free advice and support services if you are dealing with debt.

The Scottish Government has introduced Scotland's Financial Health Service, which signposts to free and impartial guidance for people with financial issues. The website provides access to advice on debt, your home and money issues and helps you find the right trusted organisations. To speak to a financial health adviser, visit the website or telephone 0800 707 6696.