This year many people living in Scotland will seek Scottish debt advice to help them deal with unaffordable personal debt.
Although there are a range of debt Scottish debt solutions available, many individuals will be drawn towards a Trust Deed in Scotland as a means of solving their financial problems.
Consider all of your options before you decide on a final solution
Choosing the right debt solution will probably be one of the most important decisions you will make.
You should consult an FCA regulated Debt Advisory Service who can provide or arrange advice on all of the solutions available within Scotland.
Approaching a Debt Advisor or Debt Management Company that offer only one or two solutions may not result in you obtaining the best advice as they may only consider their own products and services.
Making the wrong choice of solution can result in you having to pay hundreds if not thousands of pounds more than you need to pay.
Like all Scottish debt solutions, Trust Deeds in Scotland have their own unique advantages and disadvantages that need to be considered carefully.
Advantages and disadvantages of a Trust Deed in Scotland
- Trust Deeds Scotland solutions normally lasts for 4 years.
- Subject to maintaining your payments and adhering to the terms and conditions, at the end of the term the balance of your debts are written off.
- Once protected, your creditors that are included in the trust deed are unable to continue adding interest and charges or take legal action against you.
- Your monthly contributions are based on your affordability.
- Pressure from creditors is removed as all future dealings with them will be carried out by your Trustee.
- Depending on your occupation, signing a Trust Deed in Scotland could affect your employment. You should check your contract of employment before making a commitment.
- It will affect your credit rating and you may find it hard to get credit you’re your Scottish Trust Deed ends
- Only unsecured debts can be included in Trust Deed, secured loans and hire purchase agreements cannot be included.
- If your Scotland Trust Deed application fails your creditors can petition for your bankruptcy.
- If you were to default on the arrangement your Insolvency Practitioner can petition for your Sequestration
- If you are homeowner with equity in your property, that value may have to be released to pay towards your debt
- Your details will be placed on the public insolvency register
Other available Scottish debt help solutions
Living in Scotland, there are other options for managing debt which should be considered, they include:
Sequestration, Temporary repayment arrangements, Debt Management Plan, Debt Arrangement Scheme, Equity release, Re-mortgaging, Consolidation loans and Part Settlements
Debt Advisory Services Scotland provide a free financial review service to help identify the best solution for you to deal with your debts.
Our review service is completely free and there is no commitment for you to action any recommendations that we make.
If you are worried about your current level of debt and If you are interested in finding out more about the available debt help in Scotland contact Debt Advisory Services Scotland today on 0141 956 4088 or on 0800 011 2322 and speak to one of our friendly and experienced debt advisors.
Debt Advisory Services Scotland is regulated by The Financial Conduct Authority No 671573 to provide debt advice to people living in Scotland.
Free advice is available from The Money Advice Service who can be contacted on 0800 138 7777.