Scottish debt token payments and some questions

glasstable

I’m back again!

When do I offer token payments and how?

When the debt defaults do I still make token payments?  Does the token payments affect the default date & would the debt still fall off credit file in 6 years or would it be longer due to payments?

How much do I offer?

Debts will miss their first payment at the end of this month.  I’m cancelling all direct debits today.

I’m terrified of being taken to court and being issued with a decree (Scotland)

Debts are £35,0000.

i thought about a trust deed but scared I need to sell things and also I have a car on PCP which I need for work and still have 3 years left to pay.  

Can anyone advise how a trust deed or debt arrangement scheme in Scotland works?  If my wages increase by £50 is that then whipped away?  Do you have to sell things?  What type of bank account can you have? Are you allowed any form of credit on these? I have a small Barclays card with £300 limit and a Natonwide £1900 limit - both with £0 balance and both for extreme emergencies only though hoping to replace that with an emergency fund!

I do plan on making affordability complaints further down the line.  What evidence do I need for these? Is there a time limit on these claims? 

I have 4 cards with one lender totalling £14K debt do I make 4 separate claims

Most of my credit cards were taken out latter end of 2022 beginning of 2023.

dever33

You can offer token payments once you’re in arrears. Usually £1–£5 a month just to show goodwill. Do it in writing and keep records.

Grumpelstiltskin

Token payments only work for a very short time.

No credit cards of any kind, you need to build up an emergency fund before making any payments then you won't need a credit card.

fatbelly

There are a lot of questions in there and I am not experienced in Scottish Debt Solutions.

A protected trust deed seems similar to an IVA with fees around £4000. Why are you looking at that as a way forward?

Token offers are not a good longterm solution and rarely useful in the short term. Again, why?

If your debts are all credit cards and you cannot afford the minimum payments then just stop paying

You can do affordability complaints att any time so you may as well get going with that

Maybe phone National Debtline for longer term options

ManyWays

Does the token payments affect the default date & would the debt still fall off credit file in 6 years or would it be longer due to payments?
They will still fall off 6 years after the default date

How much do I offer?
That depends on how much spare income you have and how much you can save up a month

I have a car on PCP which I need for work and still have 3 years left to pay.  
This is likely to be your biggest from in a Trust Deed, DAS, self managed DMP or token payments. You will not be able to get new car finance or finance the balloon payment exect at a very high rate of interest. You need a plan for what to do at that point.

If my wages increase by £50 is that then whipped away?
I am not a Scottish debt expert, but i am pretty sure there will be annual reviews when the payment may be increased. Drawing parallels with IVAs and DMPs south of the border, IVAs are quite intrusive and inflexible. DMPs are easier and cant fail if you have to pay less, 

Do you have to sell things?  
No.

What type of bank account can you have? Are you allowed any form of credit on these? I have a small Barclays card with £300 limit and a Natonwide £1900 limit - both with £0 balance and both for extreme emergencies only though hoping to replace that with an emergency fund!
A basic bank account with no overdraft is all you are likely to be able to get in a Trust Deed or DAS. this is ok provided your allowed budget is reasonable, allowing you to put money by for emergencies

I have 4 cards with one lender totalling £14K debt do I make 4 separate claims
One claim covering for all 4 cards

Most of my credit cards were taken out latter end of 2022 beginning of 2023.
No time barring probelms for affordability complaints about them. Still a good idea to get on with them, these things never get easier as time goes on 

glasstable

fatbelly said:

There are a lot of questions in there and I am not experienced in Scottish Debt Solutions.

A protected trust deed seems similar to an IVA with fees around £4000. Why are you looking at that as a way forward?

Token offers are not a good longterm solution and rarely useful in the short term. Again, why?

If your debts are all credit cards and you cannot afford the minimum payments then just stop paying

You can do affordability complaints att any time so you may as well get going with that

Maybe phone National Debtline for longer term options

I have 2 loans as well as the credit cards does this make a difference? 

fatbelly

If they are just unsecured personal loans, no problem

Make sure you are banking somewhere unconnected to your debts

glasstable

Has anyone been taken to court for their debt (in Scotland)?   

None of the debt I have is secured against anything.  

I don’t own my home - rent from local authority.

Thank you for all your help so far. 

allystar

I'm in Scotland too, so popped your question into ChatGPT and got the following:

📌 So, how likely is it?

In practice:

Situation	Likelihood of Court Action
Small unsecured debt, some communication or repayment offer	Low to moderate
Significant debt, ignored contact and default	Moderate
Longstanding debt with no engagement	Higher (but still not guaranteed)
Very small or old debt	Low — often uneconomical or statute-barred

Overall: Court action does happen in Scotland, but lenders do not automatically take everyone to court for unsecured debt. Many pursue other collection steps first, and only escalate if they feel it’s likely to succeed and be cost-effective. Creditors also must act within legal time limits.

In terms of prescribe debt...here's the ChatGPT response - which I think is pretty accurate:

⏳ 1. Debt prescription (time limits) in Scotland

For most unsecured consumer debts (credit cards, personal loans, overdrafts, store cards):

✅ 5 years = prescribed (written off)

A debt is extinguished after 5 years if all of the following are true:

• You have not made a payment

• You have not acknowledged the debt in writing

• The creditor has not raised court action

• The creditor has not obtained a decree

Once prescribed:

• The debt no longer exists in law

• The creditor cannot take you to court

• They should not keep chasing you once informed

⚠️ Important:
A simple written acknowledgement like “I know I owe this” can restart the 5-year clock. Verbal conversations do not restart it.

---

🚫 Debts that do not prescribe after 5 years

Some debts have different rules, including:

• Council tax

• Court fines

• Child maintenance

• Student loans (most types)

If your debt is one of these, tell me — the rules change.

---

📬 2. What to do if you’re contacted about a debt you can’t pay

Step 1: Do not ignore letters

Ignoring contact makes court action more likely.

Step 2: Check whether the debt is prescribed

Ask yourself:

• When was the last payment?

• When was the last written acknowledgement?

If it’s close to or over 5 years, be very careful what you say.

👉 You can send a “prescription letter” stating you believe the debt is extinguished.
(Do not admit the debt.)

Step 3: If the debt is not prescribed

You still have strong options:

✔️ Offer affordable repayment

• Even a small amount can prevent court action

• Creditors must consider reasonable offers

✔️ Ask for a hold on enforcement

Especially if:

• You’re unwell

• Your income is unstable

• You’re seeking debt advice

✔️ Get free debt advice

In Scotland, these are excellent and free:

• StepChange

• Citizens Advice Scotland

• National Debtline Scotland

---

⚖️ 3. If court action is threatened or started

• You’ll receive formal Sheriff Court papers

• You can:

  • Ask for time to pay

  • Dispute the amount

  • Raise prescription as a defence (if applicable)

⚠️ Do not ignore court papers — missing deadlines almost guarantees a decree.

---

🧠 Key takeaways

• Most unsecured debts in Scotland die after 5 years if untouched

• Creditors often threaten court, but many never follow through

• Written acknowledgement resets the clock

• You have strong protections if you engage early

 

ManyWays

I think ChatGPT's views on the likelihood of court action are worth about zero. There are no statistics to base this on; it just made this up. 

NB I am not saying court action is likely, just to ignore ChatGPT, which I know is hard when it is saying something that sounds friendly and sensible.

allystar

Just to give you some background to my situation, I stopped all payments to 3 loans and 5 credit cards in December 2024 - total amount around £80k.

All have since defaulted and I am currently only paying towards 2 debts - 1 loan & 1 credit card via Wescot & Arc - none of the other lenders have been in touch for payment.

I raised affordability complaints against some...won 1 of the loans (Zopa) & 2 credit card complaints - balances were all reduced, Zopa no longer being reported and to date, no request for payment - I know it's early days, but if this one can ride out the 5 years, it will be amazing.

So it is a slow process and thanks to the advice on here, I am in a slightly better situation that I was at the start of my journey - my emergency fund isn't as great as it could be due to a couple of big repairs, but no additional credit used, so a small win!

Good luck!