Seeking help with debt can seem like a daunting prospect, however, if you are struggling to manage your money, then it is important to get advice from a professional. If you are looking for options to help you become debt-free and you are a Scottish national, then one of the Scottish debt solutions open to you is a trust deed.
Scottish Protected Trust Deeds are used as a way of remaining solvent after other avenues have been exhausted. You are trying to repay your unsecured debt, but it is just not going to be possible. What happens is that all your unsecured debt is collected together. Get more informed insights from Creditfix – Protected Trust Deeds. Notice that this is unsecured debt. This means that your mortgage is not part of this. It is for credit cards, store cards, and unsecured credit lines
The following are the advantages of a Scottish protected trust deed
A collection of debts together to easy regular payment
Much like an Individual Voluntary Arrangement in England, a trust deed will bring all of your debts into one place and set up regular monthly payments to help pay your creditors.
You get help from trustees on your monthly payment
When you decide to enter into a deed, your trustee will calculate how much you can afford to repay each month based on your disposable income.
Writing off of unpaid debts
Another significant advantage to a trust deed is that at the end of the arrangement (usually after three years) any debts you have not repaid will be written off.
Easy payment without selling your asset
Trust deeds are often preferable to bankruptcy because they do not require you to sell your assets to repay your creditors and do not have the same conditions attached to them, such as being unable to be a director of a company.
You have two choices when it comes to trust deeds in Scotland. These are between a protected and unprotected agreement. Most people go for the former option because this prevents all of your creditors from contacting you, including those that have not agreed to the terms of the deed. Your trustee will deal directly with your creditors, allowing you to avoid the stress of receiving bills and demand letters on a regular basis.
Frozen interest on your debts
A further advantage to choosing a protected trust deed is that all the interest you owe on your debts will be frozen, preventing you from slipping further into debt while working to repay creditors