Debt problems are not uncommon, and can lead to all manner of problems, not least stress and anxiety. When you first take out a credit card or other credit agreement, for example, you may be single and earning a good wage. A few years down the line, you are no longer single, have taken on more credit, and find that you have less disposable income than you once had. Now the problems start, as you fail to make payments on time, and fall into the credit trap that so many people experience. It can be difficult to see way out, but there is one solution that you may be able to take advantage of.
It’s called a Trust Deed, and it is a legally binding agreement that is designed to help people who are facing serious problems with debt. Before we go on to describe what it is all about, it is vital to understand that a protected Trust Deed, to give it the full name, is available only to those in Scotland; in England and Wales, you have the option of a similar agreement known as an Individual Voluntary Agreement, or IVA. If you are in Scotland, read on for more information on how a Trust Deed could benefit you.
What is a Trust Deed?
To begin with, you should know that a Trust Deed can only be set up and administered by a licensed Insolvency Practitioner (IP); this is to give you and your creditors the peace of mind that you are involved in a legally-binding agreement that will help them recover some of their money, and will help you get out of debt. You can find out more about what an IP does by reading the Creditfix Trust Deed pages at their website, as they are experts in the field with many satisfied clients.
A trust deed will see you pay a single monthly fee to your IP; the amount is determined by both parties by considering your monthly income and outgoings, so will be a fee that you can afford. This money is administered by the IP, who is your legal trustee, and they will distribute it among your creditors for you. The agreement will usually run for four years, although in some cases longer, and at the end of the term any remaining debts will be written off.
Is It for You?
If you live in Scotland and are seeing your debt get out of control, and you meet the criteria to make you eligible, a Trust Deed is a sensible solution to investigate, and we strongly recommend you talk to the experts before things get completely out of control.
Debt can be a difficult thing to manage, so don’t ignore the problem if you see it rising. Get in touch with a reputable IP right away, and see how they can help make your life much easier and debt-free in just a few years.