How a Trust Deed can help you out of the debt spiral
We all know how awful it can be when you’re struggling with debt problems. Every other letter you get in the post seems to be demanding money, and in many cases it seems there’s no way out of the chaos. It all adds to your stress levels, of course, and the harder you try the more it seems that you’re standing still.
Here at BlueSky Finance, we have the experience and the knowledge to point you in the right direction, to give you the support you need and to offer potential solutions that could bring a practical resolution. No matter how desperate your situation might seem to be, one call to our specialists may be all you need.
If you live in Scotland, a Trust Deed could be the ideal scheme for you. In essence, it enables you to enter into an agreement that sees you paying regular, affordable payments to your creditors over a fixed period (usually four years). And when that period comes to an end, the debts are then written off, leaving you with a chance to rebuild your life, a life that is no longer dominated by worry and stress.
Your Trust Deed will only apply to unsecured debts, such as credit card balances and personal loans. Mortgages and secured loans won’t be included, so you need to think about this when budgeting. Don’t worry, however, because we can talk you through every single step of the process.
What are the advantages of a trust deed?
- Peace of mind, as your creditors, will stop contacting you with all communication being handled by your Trustee.
- You can still have a bank account while in a trust deed.
- Your Creditors will not be able to add any further interest or late payment fees onto your outstanding debts.
- A portion of your debt that you have in your trust deed is written off at the end of the trust deed as long as you have kept up with the monthly repayments.
What are the disadvantages of a trust deed?
- Not all debts can be included in your trust deed.
- Your spending power may be restricted.
- Unless your creditors accept the proposal that is put forward, the trust deed may fail to gain ‘protected’ status and therefore you will be at risk of bankruptcy.
- Homeowners may be required to release equity to pay towards their debt, re-mortgaging may attract a higher interest rate. If no re-mortgage is available the Trust Deed may be extended.
- Your credit rating will be negatively impacted by entering a trust deed and will remain on your file for six years.
- An entry must be made on the Register of Insolvencies, therefore signing up to a trust deed will become a matter of public record. have kept up with the monthly repayments.
One of several options that can help you
If you’re currently dealing with plenty of debt-related issues, the idea of a Trust Deed might sound perfect, but you need to be aware that it’s not suitable for everyone. By signing up, you’re entering into a fixed commitment that you will have to stick to, for example. Your assets will be in the hands of someone who is appointed to handle your affairs, and he or she will act as your trustee for the period of the arrangement.
When you apply, the amount you can afford to pay back each month will be decided after an assessment of your income and expenditure. You will of course be able to keep your reasonable living expenses such as household bills, rent or mortgage payments, travel, food and suchlike.
It’s also worth noting that any one of several other debt schemes may be more suited to your personal circumstances. Here at BlueSky Finance, we offer advice and guidance on all the options, carefully explaining the plus and minus points of each of them. With our friendly specialists on your side, you’ll be able to assess the best strategy from then on, and we can be right by your side throughout.
Have a chat with our team today on 0141 488 2212, and see what a difference we can make. We look forward to helping you soon.