You hear about it happening to other people and read about it in the press all the time but I don’t think anybody expects it to happen to them and neither did I. However it did and without really knowing how it happened I found myself with a debt problem and didn’t have a clue what to do about it.
Looking back I can see now that easy access to credit and credit cards in particular was my downfall. I resorted too easily to my credit card for just about everything and was spending money I didn’t have. All of a sudden I was only paying the minimum payments and before I knew it started to struggle with those. Then came the missed payments followed by the horrendous charges and as my debt continued to rise I continued to struggle and seemed unable to sort it.
Searching the internet one night I came across a website of debt advisors who were waxing lyrical about the benefits of the Debt Arrangement Scheme and how it could help people struggling with their debt. That was me. I made contact and thank goodness I did. I spoke to a very nice lady who was one of their qualified debt advisors and she explained the scheme to me in detail.
How it works
It’s a pretty simple concept which is backed by the Scottish Government and has been put in place to provide a legal agreement that allows people a bit of breathing space to pay off their debts at a level they can afford. Interest and charges can be frozen so that there is no increase in the total amount of your debt. You deal with an official scheme administrator who strikes a deal with your creditors for you to make a single monthly payment that is affordable to you.
Once this is agreed with your creditors it becomes legally binding on all and your creditors are no longer allowed to chase you for money or take legal action against you. It really takes the pressure off and it was an absolute weight off my shoulders. You have to make your payments over a longer period of time and you must pay off all of your debt but being able to agree a payment that you can afford and not have to struggle every month really makes a huge difference and can enable you to get your life back to normal.
From the information given to me by the official administrator the scheme is also flexible enough to help if your circumstances change for the worse. If this happens you can take a holiday period from payments of up to six months. So all round I would say the Debt Arrangement Scheme works really well and is extremely effective in helping you to repay your debt if you find yourself struggling with payments you simply can’t afford.
Make sure it’s right for you
Your credit rating is affected by entering into the arrangement but I think this is the case with most debt solutions. However in my case a bit of a dent in my credit score was worth the difference it made to me in managing my finances and being able to live my life without the constant worry of unmanageable debt.