Large majority
of people all over Europe these days are reeling under debt. They are finding
it difficult to get out of the debt trap they have got into. Either the terms
and conditions are unfavourable or their income source is not enough to cover
the debt. A large number of households are feeling the pinch of slowing economy
and rising prices. Their household budget seems to have gone for a toss and
they are feeling the crunch on domestic front.
Here Comes The Role Of
Government:
·
The Scottish government is proactive in saving the households from debt
trap. The government debt help is
very sincere to protect the interests of common households. The debt is managed
through a scheme called Protected Trust Deed, wherein all the unsecured loans
like that on credit cards, credit lines and sundries which are not secured by
any collateral, are compiled, consolidated and then negotiated with the
creditors by Government
debt help Scotland.
·
All of the unsecured debt is put under one head and negotiations are
done with creditors. The creditors and trustee of Protected Deed Trust from government debt help agencies make
arrangement for monthly bill for the next three years. This stops the household
to get pestering phone calls and notices.
·
Government debt help Scotland would also get the freeze on the credit
charges and interests of household debtors. This will be only for three years
and after which debtors are free of any debt.
Definitely it is
damaging for the creditors who have to make compromises on debt amount.
However, it still seems better deal from government
debt help than foregoing the whole amount in case of bankruptcy and
long legal battles. As for the Government
debt help Scotland, a staggering number of bankrupt households would have presented
a grim situation for the economy.
