Are you burying your head in the sand? That's the question Trading Standards is asking residents of South Ayrshire this New Year as credit cards bills start dropping through their letterboxes. Today sees the launch of South Ayrshire Council's "Don't hide from your debt!" campaign aimed at increasing awareness of the free, impartial, independent and confidential money advice/debt counselling service on offer.

Over the coming weeks there will be ads on local radio, buses and bus shelters and leaflets will be distributed to the local community highlighting the availability of the free service provided by the Council's Trading Standards service.

Councillor Hugh Hunter, Convener of South Ayrshire Council's Community Safety Committee said, "Seeking advice and assistance early on is so important when someone has financial problems. Newspapers and daytime television are full of adverts offering loans. However someone who is struggling financially and has debts should never try and get out of the situation by taking on more debt without seeking professional advice. Advisors within Trading Standards can examine the full position, explain the available options and establish realistic repayment with creditors. This way the person may avoid further court action, disconnection or eviction, which should alleviate stress and anxiety in the home."

Last year advisors helped over 1200 South Ayrshire residents dig their way out of debt by helping them establish realistic repayment arrangements with creditors. Advisors can discuss the options available to clients.

The Scottish Executive has introduced a Debt Arrangement Scheme (DAS), a new free debt management tool to help people when they are in debt. Advisors within the Council's Trading Standards Service are the only DAS approved money advisers in South Ayrshire who are able to access this scheme for residents. A DAS can help people if they are in debt by giving them time to pay, which prevents creditors taking enforcement action. In addition it can be beneficial to creditors as they will receive regular repayments and will not have the additional costs involved or time spent in taking court action.

One resident who used the service last year said, "I was off my work due to ill health and did not have enough money coming into to pay all my bills. I didn't know what to do then I saw a leaflet from Trading Standards and phoned an advisor for a confidential interview. I was initially embarrassed to ask for help but now know this is the best thing I have ever done. A payment arrangement was reached with all the creditors and I could start to get my life together again".

However, it's not just the person in debt that benefits from this service but the creditor too. Often a creditor's only solution is to take court action because of non-payment so it helpful for them to have the assistance of Trading Standards to plan a programme of regular repayments. If you or you know anyone that would benefit from our service please do not hesitate to contact our helpline on Ayr 61-60-60.

People come for help when they can no longer make ends meet. They are often struggling to pay for essentials like rent, mortgage, electricity or gas. Often when they first come for advice, they are being threatened with eviction or disconnection of their fuel supply. Advisors try to lessen the stress of the situation by checking the client's financial situation and drawing up a programme of reduced payments as a result of negotiations with creditors.
This enables consumers to manage their financial situation and helps prevent evictions, repossessions and disconnections. This, in the long term, helps to reduce domestic and health problems such as stress, alcohol and drug problems.
Case Example: Mr. A. had a mortgage and a secured debt. Both creditors held repossession decrees against the client's property. A payment arrangement was made to clear off the arrears on both debts. The client needed help with budgeting to meet this arrangement because he had an arrestment on his wages. All his other commercial creditors were encouraged to pursue a conjoined arrestment. This meant that the client would be able to meet his obligations to his secured creditors, which are always considered a priority.

Why Do People Get Into Debt?

Different people need different kinds of help. Some people only want advice on how to tackle their problems themselves. Others need help to write a letter or to fill in a form. Most clients want help to negotiate reduced payments with their creditors. In extreme cases, the Advisor can represent the client in court actions in the Sheriff Court. By law, we can provide lay representation in actions for sums under £750. Outlined below are basic procedures which money advice staff follow:
Interview the client and deal with any emergencies (e.g. disconnection, eviction, and court form) Check all documents to get a true picture of the situation and to make sure that the client is liable for the debt. Write to all creditors (sometimes this is in excess of twenty) asking them for a confirmed balance and to hold action. Check that the client is claiming everything they are entitled to and that tax and NI contributions are correct. Examine the income and expenditure of the client and work out how much they can afford to pay to their creditors. Examine the options with the client and decide whether a repayment programme, schedule of token payments or another option is the most suitable. Negotiate with creditors to agree a repayment plan. When the programme is established, monitor and review as required
In order to ensure that advice is immediately available to those struggling with the stress of debt, South Ayrshire Council, in conjunction with The Office of Fair Trading, introduced a debt helpline on 01292 616060.
Case Example: The Criminal Justice Team referred Mrs. C to our advisors, as the Benefits Agency was taking action against her for an overpayment of benefit caused by fraud. She had rent arrears in excess of £1000 and the Council had a decree to evict. She also had other debts totalling £4000. Her only source of income was from two low paid part-time jobs. She decided to pursue bankruptcy, but could not risk including her rent arrears with her other debts in the sequestration, as the Council could have enforced the decree to evict. Her son borrowed the money to clear off her rent arrears. She then applied for bankruptcy and money advice staff made an arrangement with the Benefits Agency for her to make minimal repayments.
The Office Of Fair Trading has launched a website designed to assist in matters of money advice and debt, allowing consumers to take control of their spending.

Keep Debt Under Control!

We all sometimes end up spending far more than we ever meant to.

Getting credit might look fast, easy and good value - but paying it off can be slow, painful and costly.

There are lots of times when borrowing money does make sense, but there are so many different types of loans and interest rates that it's hard to work out the best deal.

Before you borrow:

• Be tough! - Work out how much you really spend every month and how much you have to pay back money you borrow.
• Don't pay more than you need to - The best credit deals charge the lowest APR.
• The sales are coming up - Could you wait a few weeks and buy what you need more cheaply then.

The unexpected pitch:

• It's easy to get carried away - Special offers and store card deals are designed to get us to part with our money, but by standing back, we can see if we're buying something we really want. Think carefully before you put up your home as security for any loan. If you got ill or lost your job you could risk losing your home as well.

If you do borrow:

There are many ways to borrow money. Check out the different options to find the one that's best suited to you.

• Credit cards - find the cheapest rate and try to clear the balance during the interest free period.
• Overdrafts - remember that if you go over your limit the bank will charge you a lot more than the interest rate you agreed when you took out your overdraft.
• Instant credit - check the small print. If your late with a payment or don't finish making all the payments in time, some deals charge you interest on the whole amount you've borrowed. Check the shop isn't marking up the goods to compensate for the free credit offer - you might be able to buy cheaper elsewhere.
• Doorstep credit and catalogues - they can be expensive. Your weekly repayments might look affordable, but if the APR is high then you're paying more than you need to. Compare catalogue prices with other shops before you order.
• Credit unions - work for some people. You save with them for a set time and you can usually borrow two or three times what you've saved. The Association of British Credit Unions, on 0161 832 3694, can tell you where your nearest one is operating.

If you've borrowed too much:

• It's an awful feeling but try not to panic - many of us get into debt at different times in our lives. The
  important thing is to recognise that there is a problem - and then get free help and advice from the professionals who can:
• talk to the people you owe money to;
• agree future payments that you can afford;
• help you sort out the priority debts (such as your rent or mortgage, fuel bills, council tax or
  maintenance) and organise your money for the future.

Free help and advice is available from South Ayrshire Trading Standards Consumer & Business Advice Centre - contact South Ayrshire Debt Helpline on 01292 616060