The deadline for submitting Self-Assessment forms to HMRC is fast approaching, and this can bring your full financial situation into sharp focus, particularly if you are unable to afford the resulting tax payments.

The deadline for submission of your Self-Assessment forms to HMRC and payment of any outstanding liability is 31 January, however due to COVID the late filing and late payment penalties are being waived for one monthwith the deadline for submission of your Self Assessment forms to HMRC on 28 February 2022. Interest will however be charged on any outstanding liabilities from 1 February 2022. Getting the right advice now and putting a debt solution in place could mean that you will have less to pay in penalties than if you wait until these deadlines have passed.

HMRC will always look to recover debts due to them, particularly those arising from Self-Assessment, and this can result in legal action including bankruptcy (Sequestration). Rather than letting HMRC take the lead on dealing with your tax debts, now is the perfect time to get advice on dealing with your debts and our team at Don’t Fret About Debt are here to help.

If you have assets to protect, for example equity in your home, or a car that you own outright, we can discuss the possibility of a Debt Arrangement Scheme (DAS) to provide legal protection from all your creditors, including HMRC. A DAS freezes interest and charges from the date it becomes approved. Our debt experts can help you  create a realistic household budget to determine how much you will pay towards your debts each month, and once the DAS is in place you make one affordable monthly payment, that gets split fairly between your creditors.

If HMRC are the sole creditor we can still help you apply for a DAS. One of our clients, a self-employed professional, came to us with over £63,000 of debts owed solely to HMRC for Self-Assessment arrears. Despite court action having already been initiated, we were able to have the DAS application approved and our client is now more than halfway through their payment plan, with their assets protected from enforcement by HMRC. 

There are other options for dealing with your debts. Applying for your own bankruptcy (Sequestration) means that you can choose who to appoint as the Trustee for your bankruptcy, rather than HMRC having control of this. The Trustee is appointed to recover money from you and pay back a percentage of the debts to your creditors, or the full amount if the sale of your assets and the 4 years of monthly payments would cover this. By appointing a Trustee that you have chosen yourself, you can have greater confidence that the Trustee will work with you to create a realistic budget, and that they will review your budget and your monthly payments if your circumstances change. If your debts are substantially higher than your assets, or repayment of debts would take an unrealistic length of time, bankruptcy is often the best way to deal with debts that include Self-Assessment arrears or other funds due to HMRC.

A Trust Deed can be an excellent way to deal with a significant proportion of your total debts, but unlike bankruptcy (Sequestration), your creditors get to vote on whether or not your Trust Deed application should become approved. HMRC want to recover as much of the money due to them as they can, so they are unlikely to agree to a Trust Deed where they are likely to get back a small percentage of the funds owed to them. For that reason a DAS or Sequestration are most often the best advice if you have Self-Assessment arrears.

For further advice on dealing with debts owed to HMRC, or any other types of debt, contact our expert team on 0141 567 4567, or by email at enquiries@dontfretaboutdebt.net

Unforeseen circumstances such as being off sick from work, looking after a relative, unemployment, or over-extending yourself financially can understandably cause a shock and loss of control to your budget and household finances. The good news is that taking back control of your budget is easier than you might think. Not all your expenses have the same level of importance, and the order of importance could surprise you. Don’t Fret About Debt’s expert advisor, Alan McMillan, discusses how and where to focus your budget to give you back control.

1. Rent or Mortgage; Council Tax; Gas & Electricity; Food; Home Insurance

The consequences of not paying these costs are usually the most severe – if you haven’t paid your credit card then interest and charges may be added, but if you haven’t paid your rent or mortgage then your home is at risk. Councils have unique legal rights to arrest money from your wages or bank account without taking you to court, they can automatically get a summary warrant if you haven’t paid your Council Tax, and you don’t get a say how much is taken, as this is decided by law. Falling behind on your gas & electricity can eventually lead to the supply being cut-off or prepayment meters installed.

While food may seem an obvious priority, many people prioritise paying back credit cards or loans over a realistic food budget. If you are in arrears on your rent, mortgage, Council Tax, gas or electricity, our team could help you put the arrears into a debt solution, help to prevent further action, speak to your creditors on your behalf so you don’t have to, put realistic repayments in place, and allow you to focus on your current day to day budget.

2. Travel; Telephone; Life Insurance; Factoring Fees; Clothing

If you are unable to get to work, you’re unlikely to be earning money. While working from home may have helped those who could with travel costs, the costs for gas & electricity will likely have increased due to more time at home. Life Insurance is particularly important for anyone with children, or with a partner who would be left to pay the mortgage should the worst happen. Property factors won’t be slow to pursue any outstanding bills and legal action from your factor could result in much larger debt.

Clothing, particularly when you have growing children, is an unavoidable cost. Having a sensible budget for clothing is key, so think about how much you might spend over a year and divide this by twelve months, or 52 weeks if you get paid weekly. Setting this aside in a separate bank account from your bills means the money will be there when required.

3. Internet; Hairdressing; Hobbies & everything else

These are the things that you would like to do but aren’t essential. If you are struggling with the expenses in sections 1 & 2 then you should be looking to make savings here.

4. Consumer Debts – Buy Now Pay Later, Credit Cards, Loans, Overdrafts, Catalogues etc.

Consumer debts should be one of your lowest priorities when you are struggling financially and where you should seek expert debt advice. Our team of experts can help to reduce your monthly payments to a realistic amount that will still allow you to budget for the costs we have already discussed. When taking control of your budget, paying your creditors what you can afford, after seeking professional advice, is a key recommendation.

If you would like to discuss taking back control of your finances and deal with your debt, contact our expert team at Don’t Fret About Debt who can talk you through a budget plan based on you and your circumstances. Part of the budget planning that our team run through with you includes being able to celebrate special occasions such as birthdays and holidays. Budgeting is necessary to control your finances, however it does not need to exclude opportunities for you to celebrate special occasions and still deal with your debt.

Call our team on 0141 567 4567 or email enquiries@dontfretaboutdebt.net and a member of our team will be in touch.

With the festive period approaching we understand that this time of year can be a stressful time for those in debt.

Our experienced debt advisors are on hand to ensure you can enjoy the festive period and as part of the budget plan our team complete with you we include a monthly amount towards birthdays and special occasions.

Our clients tell us that after running through the budget plans and entering into a debt payment programme they can look forward to special occasions knowing their debts are under control and they can still celebrate.

Debt expert Alan McMillan shares some of the common concerns people have when dealing with debt over the festive period and tips on how to deal with these:

• ‘Buying presents adds to the stress of paying my credit cards and loans, I don’t know how I will manage to pay these when my statement comes in.’ – We recommend speaking to us now to get advice on dealing with your bill payments, and we can work with you to have a plan in place to deal with the debts for the New Year.
• ‘I’m hosting  my family and I’m paying for this on my credit card as I don’t have savings to cover it.’ – Ask family to bring part of the meal, e.g. the starter or dessert, or some of the drinks. If your credit card balance is not coming down, or adding the hosting expenses will cause you to struggle, contact us to discuss the best way to deal with your debts. Our experienced Debt Advisors will clearly explain the options available to you and answer your questions.
• ‘Being paid early in December means I’m worried about being able to pay my bills in January & February.’ – Prioritising your essential costs, mortgage; rent; gas; electricity; Council Tax; and food costs is always the best advice. Credit cards, loans, overdrafts and other credit costs are secondary priorities and there are ways to reduce the monthly payments towards these. Contact Don’t Fret About Debt to find out how we can help reduce the monthly payments to your debts.    

If you are concerned about your finances and are finding the festive period more stressful as a result of debt, speak to one of our debt advisors for free, expert debt advice.

We offer all statutory debt solutions in Scotland including a Debt Arrangement Scheme (DAS), Trust Deed or sequestration and are on hand to discuss how we can offer a tailored debt solution for you based on your circumstances.

Call 0141 567 4567, email us at enquiries@dontfretaboutdebt.net or message us via our website and a member of our team will be in touch.

A DAS, or Debt Arrangement Scheme, is a statutory Debt Payment Programme approved by the Scottish Government.  It allows you to freeze the interest and charges on your debts and repay your debts in one affordable monthly repayment, without the threat of any legal action from your creditors.

If you find that you can’t keep up with your bills and household costs, or you are making the minimum payment to your debts and the balance never seems to come down, then a DAS can help you to take back control of your finances. Through a Debt Arrangement Scheme Scotland you can repay your debts in full, in a realistic repayment term, without going down the route of insolvency for example, a Trust Deed or Sequestration (bankruptcy). We will help you create a realistic and sustainable budget and work out how much you can afford to pay into your DAS each month.

The additional benefits of entering into a DAS are that you are able to protect any assets you own for example, your home or car, from legal action by your creditors, and you no longer have to deal with the creditors yourself. Your approved Money Advisor will do this for you. If you already have an earnings arrestment in place, this will be lifted once your DAS has been approved.

Additionally, you don’t pay any fees for a Debt Arrangement Scheme. Your creditors pay for the running of the DAS by accepting a 22% reduction in the balance due to them, which is used to pay for the costs of setting up and administering your DAS. You will only ever pay the balance that is due to your creditors on the date your DAS is approved, as long as you successfully complete the plan.

We recently set up a joint DAS for a couple whose incomes were affected by the impact of COVID-19. Their reduced income meant that they were no longer able to keep up with the payments they had previously been making to their debts, and they contacted us for help as they could see that their debts were rising instead of coming down. Now that their Debt Arrangement Scheme is approved, they can view their balances in one place through the online DAS portal and they are delighted to see that the balances are now moving in the right direction.

Our debt advice is free therefore if you’re struggling with debt, speak to one of our experienced advisors today who can advise you on all of the solutions available to you on 0141 567 4567 or email enquiries@dontfretaboutdebt.net.

With Covid restrictions lifting and the end of the Coronavirus Job Retention Scheme (furlough), many of us are starting to get an idea of what life will look like post-pandemic. Sadly, for many, this is not the same life we had pre-pandemic. Whether it means reduced income from work, less overtime availability, higher costs for operating businesses safely or the increased likelihood of redundancy, the financial implications will start to become apparent.

Arguably the biggest challenge facing us will be returning to the regular expenditure of everyday life: travel, activities with the children, eating out at restaurants, weddings, holidays and general socialising.

Many of the clients we’ve spoken to over the past year have admitted to merely existing financially – never missing a single payment to their essential outgoings but being unable to save or treat themselves. The increased social expectations of “freedom” may put further strain on already stretched finances.

“Problem debt” does not necessarily mean sheriff officers at the door, default notices or phone calls from collection companies. In many cases it means a level of debt which is manageable, for now, but which leaves no room for emergencies.  “Problem debt” is likely to be unsustainable long term should there be any kind of income shock to the household.

You don’t need to wait for this income shock to happen to receive debt advice. And you don’t need to be behind on payments. If you’re finding it hard to plan when your debts will be cleared, or you’re worried that your everyday costs are taking your wages to the wire every month without giving you any room to breathe, there are options that will suit your circumstances and give you support to get the debts cleared on your terms. Our debt experts are on hand to offer free debt advice and can advise on all possible debt solutions and talk through the ones tailored to you and your circumstances.

The most popular solution for clients recently has been the Debt Arrangement Scheme, as this allows you to freeze your interest and charges and still repay your debts in a reasonable timescale, but with a lower monthly payment. This solution gives you more breathing space and allows you to stay in control of your finances, consolidating the debts together in one place and ultimately making it easier to manage.

Our debt advice is free so if you’re struggling with debt, speak to one of our experienced debt experts today on 0141 567 4567 or email enquiries@dontfretaboutdebt.net.

At Don’t Fret About Debt we are on hand to help you take back control of your finances and can offer options to business owners with personal guarantees that protect your assets.

Business owners who have signed personal guarantees are responsible for paying the business debt back if the business can’t. This often means that a business owner’s home is at risk from legal action by a creditor, such as a petition for bankruptcy (Sequestration).

As is the case for many of our clients over the last 18 months, restrictions on trading as a result of the COVID-19 pandemic have led to many businesses struggling with debt repayment. Both business lenders and suppliers are keen to recoup the funds due to them. Often the easiest way for a creditor to do so, if the company cannot repay the business debt, is by enforcing the personal guarantees provided when the loan or credit agreement was signed.

If you are being pursued by a creditor and even if the process has already started, you can still contact us for advice, and we can help protect your assets.

We will work with you, advising you on all your options to help you decide on the best way to deal with your business debts. Our debt advisors can help with your debt by setting up an affordable monthly payment based on your income and household expenses.

In two of our recent cases, we have protected the homes of clients with debts totalling around £400k each by advising on the options available and putting in place debt solutions tailored to each client’s circumstances.

Where a reasonable repayment offer can be made to your creditors, we can offer a Debt Arrangement Scheme (DAS) to protect your home or other assets, freeze interest and charges, and prevent arrestments from your income or bank account.

If you can only afford a small repayment at this point, there are still options available to you. We may be able to get a DAS approved under the new ‘Low & Grow’ process put in place during the pandemic. This allows you to start with a small payment if you expect that your circumstances will improve within the first six months of the plan. Following these six months you will then be able to increase the repayments to a more realistic level if your circumstances have improved.

Our experienced debt advisors can provide advice on all statutory debt solutions in Scotland and if you opt for a DAS you will not pay any fees. Under the legislation covering the Debt Arrangement Scheme the fees for running the plan are covered by your creditors.

If you’re struggling with business debt, or personal debt, speak to one of our experienced debt experts today on 0141 567 4567 or email enquiries@dontfretaboutdebt.net.

As the situation surrounding COVID-19 continues to develop daily, at Don’t Fret About Debt we are doing everything we can to ensure that we keep our people safe while continuing to deliver the high quality, personal service you are used to.

Following the latest advice from the UK Government, we have put in place measures to ensure that our business can continue to operate efficiently, should we need to close our offices in the future:

• We are ensuring that our people have the equipment, technology and systems in place to allow them to work remotely.
• Our people will be able to securely access all necessary documentation remotely whilst following our usual processes and controls.
• We receive most of our communications electronically and recommend that you continue to use email to communicate with us and that you scan in any documentation you need to share with us and attach electronically to the email. If you believe you have sent something to us in the post and we have not responded to it, please speak to your usual Don’t Fret About Debt contact.
• As well as communications over email and the telephone, we are also able to offer meetings via video conferencing / Skype.
• If resourcing levels in any part of our business are compromised due to illness or inability to work, we will refocus our teams as necessary to deliver to deadlines. This would mean prioritisation of workloads and we would keep those affected updated, whilst making every effort to mitigate the impact should this situation arise.

We also understand that the evolving COVID-19 situation will present challenges to our clients and we want to reassure you that we are with you, we are in this together and we are here to help you.

Please call or email your usual Don’t Fret About Debt contact with any queries.

If you’re struggling with debt or can’t afford to pay your creditors every month, it is time to seek professional debt help.

We recommend seeking help from professional debt experts that are regulated by the FCA and will work on your case for the duration of your plan. FCA regulated companies protect consumers. Some companies offering help may know the basics of the plans and will gather the initial information, however, may not be qualified in debt advice and can pass on your information, details and case to their preferred supplier.

Our experienced team at Don’t Fret About Debt are regulated by the FCA and are debt experts who have helped thousands of clients across Scotland pay off their debts.
On our website we have a debt calculator that can help you work out the affordable monthly payments you could be made to clear your debt and these details will be emailed directly to you. Knowing your debt amount will help calculate what you could pay back every month. To understand your debt amount, follow the steps below:

• Make a list of all your unsecured debts and obtain accurate balances and account numbers.
• Using your bank statements, write down all your monthly income including salary, any benefits and other payments you receive.
• Go through your direct debits and note your mortgage or rent, Council Tax, utility bills, insurances, car payments or travel costs.
• Consider how much you spend on food, clothing, regular hobbies and social spend. It is still important to note these costs – we will never recommend a payment programme that means those spends are removed as you need to have a life. There are Government guidelines we follow for any non-essential expenditure so we can change this for you if you have budgeted too little or too much. You will need to stick to the budget agreed for the duration of your plan, so be realistic about how much you need.

If you’ve used our debt calculator, we will give you a call to run through your income and outgoings and then discuss all your options so you can make an informed choice. At Don’t Fret About Debt we offer all statutory debt solutions in Scotland so you are able to choose the debt solution tailored to you and your circumstances.
Once you choose the debt solution that works best for you there will be some paperwork to fill in to put the payment programme in place. We will pick up with all your creditors so you don’t need to. After this is done, you will make one monthly payment for the duration of your plan to pay off your debt.

Our debt advice is free so if you’re struggling with debt, speak to one of our experienced debt experts for a confidential chat on 0141 567 4567. Take the first step to dealing with your debt today.