We are all likely to experience times when money is tight, but the month after Christmas is likely to be a period where there is increased financial strain up and down the country. A combination of paying rent, bills and other needed living costs can leave us with limited money for other things such as transport to and from work. Therefore, avoiding debt can be easier said than done. Spending additional cash on council tax may become a more unwelcome charge than usual in January.
Here at Council Tax Advisors we help those who need financial support whatever month of the year it is. Thankfully, we provide a range of options when people can feel helpless at their spiralling debt. Do not worry, solutions such as our Debt Arrangement Schemes (DAS) could be the first step in restoring your financial stability and dramatically improving your mood. This works simply and effectively at getting you out of the red and back into the black without the high interest rates of payday lenders.
So, what is a Debt Arrangement Scheme? It is a method of repaying what you owe by agreeing to a Debt Payment Programme (DPP) and this covers a third of people with arrears totally more than £5,000. It is a Scottish-government scheme and you get help from a specialist DAS-approved money adviser who contacts your creditors in order to request that they agree with your DPP. While this is helpful, you will be boosted by the fact that the terms of a DPP include a freeze in interest along with smaller monthly repayments. A disadvantage of this is that you will be in debt for longer, but on the other hand, you will be paying affordable amounts.
Under a DAS you pay what you can afford, which is the amount of money remaining after essential expenditure on rent, mortgage payments, bills and food. The fact that the interest of your debt, among other charges, is frozen shows that we are fully motivated at helping Scottish citizens with their financial troubles. This arrangement is far more reliable than calling on payday companies for a quick fix. Another benefit from using this method of combating debt is the DAS means your creditors will then have no power of chasing you for the money you owe them.
Despite the positives of getting an approved DAS, it will harm your credit rating as you have defaulted on your initial repayment agreement. This means that you will be unable to borrow more money during your repayment period. On the flipside, an advantage is that you won’t lose your home as the case with some arrears where properties are repossessed. This doesn’t mean you will avoid paying rent or your mortgage, though. Your DAS only ends when you have paid all of your debts.
With council tax rising across the UK and slow economic recovery from the global financial crisis in 2008, it has proved to be very difficult for residents to keep up with property tax payments among a host of other bills. Contacting our team at CTACIC will help put your finances back on the right track and take the weight off your shoulders that financial problems bring. Getting a Debt Arrangement Scheme could well be your best option, but if you’re unsure what to do then please contact us today.