As with all formal debt solutions in Scotland, one of the main disadvantages for you will be how it affects your credit rating.
Entering into a Scottish debt solution will affect your credit rating for six years from the date the solution begins.
When borrowing money, credit reference agencies will assess the level of risk and base their decision on your financial history. This will include any defaults, whether you’re in a formal debt solution or if you have used an informal debt management plan.
However, once your chosen debt solution has finished and you have been discharged, you can then start to rebuild your credit rating and apply for a mortgage, credit cards etc.
While in the debt solution, you will make reduced monthly payments to your creditors, during which time you can get on with your life.
Before you commit to any debt help in Scotland, you would have a detailed call with an experienced debt adviser and the benefits and risks would be fully explained in the context of your own personal circumstances. In some cases, other alternatives like Sequestration (Scottish Bankruptcy) may even be the best recommendation for you.
Every case is different to the next and with any reputable debt adviser, you would receive tailored debt advice on what your debt repayment options may look like.
Remember: May not be suitable in all circumstances. Fees apply. Your credit rating may be affected. Free debt counselling, debt adjusting and providing of credit information services is available to customers by contacting MoneyHelper.