A luxurious life that sustains financial stability is every person’s dream. In today’s capitalistic world, having a strong financial background means having a stable social standing. From good education to a healthy lifestyle, better living conditions, and enjoying the luxuries of life, everything asks for money. If you can sustain your lifestyle with your earnings, then you have nothing to worry about. But if you can not pay for your needs and wants through your own earnings, you ask people for financial help – a little thing called debt. A temporary or a one-time debt is nothing to worry about if you write it off as soon as you get some money. However, when you constantly fail to pay off existing debt and continuously ask for more, you get entrapped into a continuous debt cycle. Coming out of this trap seems impossible and you lose sleep over money problems. If you have entrapped yourself into a never-ending debt situation, here are four things you can do to pull yourself out of a money crisis.
1. Look Into Your Assets
If you have assets, like gold, real estate, or even a luxurious car that is worth the amount of your debt, you have a chance to set your priorities straight. It is wise under such circumstances that you sell that asset and pay off your debt. There are numerous examples of people who took a fresh start by selling their homes to pay off debt and are now living a stress-free life.
2. Apply For Trust Deed
Trust deed can help you reduce your unaffordable debt into a single payment by paying off your creditor for you. Applying for a Trust Deed in Scotland is much easier today. You just need an Insolvency Practitioner (IP), a professional who acts as a trustee between you and your creditor. Once your creditor is cleared off, you can pay your trustee in easy installments over four years. However, to set up a trust deed, you need to have a debt of at least £5,000.
3. Go For Loan Consolidation
When you have taken debt from multiple creditors, you can collect all these debts together and apply for a Loan Consolidation. This option might work when you have paid off your priority creditors and essential expenses and you need to pay the leftover debt. Additionally, you should have some money left to pay off the loan.
4. Apply For Debt Arrangement Scheme
Debt Arrangement Scheme (DAS) is a government-led program to help residents of Scotland manage their debt situations. To apply for this scheme, you need to consult a financial advisor. This particular financial advisor will apply for you and formulate a Debt Payment Programme (DPP). This option can be particularly helpful because your creditor can not take any legal action against you. Also, you will not have to pay any interest or any kind of fee to resolve your debt issues.