Category: Debt Advice News

How Long Does A Trust Deeds Last?

Posted on by Craig Stocks
If you have taken out a trust deed to help manage your debt, you’ll likely be wondering what happens when trust deeds finish. As your trust deed term comes to an end, you will enter what’s known as the trust deed discharge process. As long as all has gone to plan, this means you have reached the end of your agreement with your creditors and have paid off all your outstanding debt. So how does it all work?

How long does a trust deed last?

Typically, a Scottish Trust Deed will last for a term of four years. During this time, you will make regular monthly repayments to your creditors as you work to pay back your debt, sticking to a plan that’s been agreed in advance. We say “typically” because a trust deed term can sometimes last longer than 48 months which would be arranged prior to entering your trust deed. And you may find yourself in a position to pay off your debts earlier, such as through selling a property and releasing equity. It’s important to note, though, that both of these arrangements need to be formally agreed before the trust deed is set in stone.

What happens when you’ve completed your trust deed term?

After your trust deed is finished, you are discharged from it, as long as you have met the obligations agreed to at the start of the process. The discharge process should take around a month – if it’s taking longer, contact your insolvency practitioner to ask why. Once discharged, all debts included in your plan will be written off. This should reflect on your credit score within 3 months. If your debts are not shown as satisfied within this time, contact your creditors and ask them to update your credit file. You can now begin rebuilding your credit.

How long does a Trust Deed take to set up?

Normally, it takes between 35-56 days for your Trust Deed proposal to be drafted by the Insolvency Practitioner. This may change depending on the complexity of your case. The proposal is then passed to the creditors for approval, who may then take up to 14 days to approve. Depending on the length of your trust deed term, you may find it difficult to obtain credit for the next year or two and you may only be offered higher interest rates during this time. However, six years after your trust deed started it will no longer show on your credit file. If you’d like information about entering a Trust Deed, try our Trust Deed Debt Calculator to see how we could help.

How do people rebuild their credit scores after Trust Deeds?

  • Spread out applications for credit.
  • Get a credit card with as low interest as possible.
  • Make small monthly purchases on the credit card and clear them in full. This enables you to make sure you don’t build up debt again.
  • Make sure you are on the electoral role.
  • Check your credit file for any inaccuracies. If there are, you can ask the company in question to fix them.
  • Don’t take out joint finances with anyone with poor credit.
  • Ask for a notice of correction to be put on your credit file if you had a reason you could not make payments, for example, hospitalisation or redundancy. (These do not have to be taken into consideration but may make a difference to some lenders if you can justify late payments that have affected your credit).

What have others said about their trust deed discharge process?

Trust Deed Scotland has a 99% satisfaction rate. Don’t just take our word for it – here are what some of our customers have said about the process and how long does a trust deed last: “From the 1st initial call right through to signing the paperwork it was great to have the professionalism, help and reassuring assistance from Danielle and Deborah. They were both understanding of my situation and I highly recommend them both as well as Trust Deed Scotland.” Al, 5/5 – Al had a trust deed that lasted 48 months. “Excellent people put my mind at rest after many months of worry. Helpful, reassuring and friendly people!” Chris Forster, 5/5 – Chris looked at solutions DAS Scotland and Trust Deeds which lasted 4 years. After which his unaffordable debt was written off. Chris now enjoys a lift after debt. “I suffer from anxiety and find it difficult to contact people I don’t know. The team was fantastic with me, helping me and catering agents to my needs. They have helped me so much and now I don’t feel as anxious and I can answer my front door again without worrying.” Nataliemary, 5/5 Read our trust deed reviews and learn what everyone is saying about their Trust Deed Scotland experience to help you decide whether it‘s the right debt solution option for you. For more information on Protected Trust Deeds take a look at our guide to protected trust deeds. If you’re wondering how a trust deed works, you will also find our walk-through guide useful too. If you’re based in Scotland and are in need of debt advice, contact us for a confidential chat.

The Devastating Impact of the Scottish Energy Industry Slump

Posted on by Craig Stocks
British manufacturers are set to cut tens of thousands of job next year as the Scottish energy industry continues to struggle. The decline of the oil industry and the collapse of the steel trade has created a range of problems that have spanned the lengths and breadth of the country. Aberdeen has been particularly affected by the downturn with many job losses affecting not only those in the oil and energy sector but in the hotel sector and other industries. It also affected homeowners planning to sell their properties as they are no longer as desirable as a result of the job losses and lack of employment. In 2006, the average house in Aberdeen cost £312 000 with some houses selling for upwards of £3 million. This is in stark contrast to the figures at the end of 2015 which show the average price has dropped by 28% to £225 000.

Help is available for Scottish residents in debt

If you need help with your finances, Trust Deed Scotland may be able to help you get back on track. Try the Wizard tool to find out how a Trust Deed could help write off a percentage of your debt and solve your money worries. Aberdeen airport’s minimum ATM withdrawal is £200, a reflection of the affluence of the clientele who pass through its doors daily including oil workers, executives and engineers. People from this industry who are being laid off are experiencing difficulties adapting to lower paid work as they may already expensive financial commitments to maintain which they took on with the expectancy of earning a high salary. A spokesperson at Trust Deed Scotland observed: “The number of people from Aberdeen enquiring about Trust Deeds has been rising for the past few months and that is most likely due to the lack of employment in the oil and gas business. People are having to change careers and take a very large drop in wages. Last week we spoke to a person who had become an HGV driver after redundancy from the oil sector and is now struggling to get by from month to month. People who were used to a certain standard of living are having to be very stringent.” Manufacturers’ organisation EEF said the factory sector may grow by a small amount in 2016 but a downturn in China is poised to trigger a global slump. The cheap prices of Chinese steel were blamed for the closures of Scottish steelworks which forced thousands into unemployment. Thousands of further jobs are at risk after British OGN failed to make the shortlist for a major North Sea contract on offer from US group Chevron. They appear poised to offer the contract to companies out with the UK, despite the fact OGN have a track record of success. Mary Glindon, MP for North Tyneside where OGN are based commented, ‘If we lose this contract I am petrified that it could lead to closure and that is the end. Once a business closes then it is rare for it to reopen.’ Chairman of OGN, Dennis Clark confirmed as many as 3000 jobs at the Wallsend yard and in other areas of the company are at risk because there is no major work confirmed for the company within the next three years.

Scottish Energy Sector Employees – Debt Help

If you are currently, or were formerly working in the Scottish Energy sector in a self-employed capacity, explore our Small Business debt help page for more info. For information about help with your personal finances, see our FAQs or Contact Trust Deed Scotland.

Prospect of Council Tax Rises Welcomed by Majority in Survey

Posted on by Craig Stocks

Prospect of Council Tax Rises Welcomed by Majority in Survey

Unless you in full-time education, under 18 or a student nurse then paying council tax is mandatory and these monthly fees can be a real burden on people’s finances across Scotland and the rest of Britain. On top of paying money for rent, food, as well as expensive utility bills this property tax can leave householders struggling to make ends meet on a regular basis. With the exception of Scotland, council tax increases have been prevalent throughout the UK as central government funding has been dwindling year after year.

The public have little control over the funding policies at Holyrood, but they do have control of their finances, although this can prove to be difficult when they near or reach debt. Residents – especially those with children – can find that their finances are stretched before they are charged with a monthly or annual payment for council tax.

The pressure of combining or prioritising costs can lead to some vital areas being neglected like purchasing healthy food or being able to afford activities for your loved ones.

A recent survey in early 2015 revealed that almost two-thirds of participants would support council tax rises in Scotland – which have been frozen since the SNP won power in 2007 – in order to fund local services.
Pretty much all industries have suffered financially since the global economic crash nearly seven years ago, but levels of debt and bankruptcy have soared. It seems as though the poorest have been made poorer and a lack of support mechanisms has certainly worsened several people’s financial positions.

Falling into debt can be unavoidable from enforced high living costs with wage rates stagnating and hundreds of thousands of UK citizens losing their jobs as companies struggle to make profits.

Levels of debt show few signs of dropping in the near future which makes free and impartial companies like us at Trust Deed Scotland so important. We listen, advise and provide solutions for people who call us or walk into our offices in Aberdeen, Edinburgh or Glasgow such as the Scottish Trust Deed.

Our Scottish Debt Help staff are dedicated to resolving your issues and helping you in the short and long term.

When you are battling debt you need clear and coherent advice on how to turn your life around and out members of staff are experienced enough to make this happen through a trust deed or another solution. We have an excellent Trust Pilot rating of 5/5 – highlighting how credible and trustworthy we are in an industry bogged down by unreliable and greedy payday lenders.

We will be with you through your economic recovery should you need to call us because of debts arising from council tax rates increasing or other payment problems.

Growing Old with Debt in Scotland

Posted on by Craig Stocks
While social and economic forecasts often differ depending on the source, there’s one thing that we can all agree on – the population of Scotland is getting older. Through better healthcare and more overall knowledge surrounding our daily diets and routines, we are managing to stave off the grim reaper for much longer than was expected when we were born and as a result having to tackle with a world of new troubles and challenges as we enter our seventh, eighth and ninth decades. This is an issue that is only going to increase in importance as the years roll on, too. The Office for National Statistics has predicted that the number of people reaching their 100th year will multiply hugely over the course of the next thirty years. In 2013, there was an estimated 14,000 centenarians in the country, but by 2037 there may be as many as 111,000. Combine this with the fact that one third of babies born in the 2010s will live to be 100 or more and you have got a society that needs to adapt its outlook in order to survive.

What does this mean for the finances of the elderly in this day and age?

It means that the harsh reality of the matter is that the majority of us have grossly underestimated our living requirements, and as a result the number of pensioners seeking debt advice and support has begun to increase over recent years. According to a report in the Herald, hundreds of thousands of Scots may be facing ‘decades of poverty’ throughout their retirement due to a misunderstanding of their needs – many of whom haven’t even cast thought about the monetary needs in years to come. One in four of the people questioned in the cited survey stated that they hadn’t considered their financial situation once they finish working, and the same amount believed that they could rely on their children once they reached that stage. While this may be true for a percentage of the population, there is much less expendable wealth for the younger generations to access. As a result, saving pots across the board are smaller and elderly family members are increasingly exposed to debt problems as they look to borrow small amounts from payday lenders to plug holes in their pockets. Through underestimating the amount of time they will need financial provisions for, elderly Scots are only now waking up to the consequences of not having a nest egg to rely on. Clive Bolton, Aviva’s managing director of retirement solutions, has sent out a stark warning to people who are struggling with their finances, stating that “even underestimating life expectancy by a couple of years could have serious consequences for someone in their later years who has outlived their savings, has care needs and has nothing to fall back on.”

So where does Trust Deed Scotland fit into all of this?

As Scottish debt help specialists, we are perfectly positioned to help people with debt in Scotland, or money troubles get back on their feet. Through our Trust Deed Wizard, we can work out the perfect debt repayment plan – one personalised to your needs, and one that is designed with the sole purpose of getting you back on your feet. Our solutions include Trust Deeds, Debt Arrangement Scheme and alternative Scottish debt solutions. Even if you feel like you’re not ready to consider whether a formal debt solution is right for you, we can help with applying for a Statutory Moratorium – breathing space from the people you owe money to. Our team can help you understand what a Statutory Moratorium is and give you an idea of how it might be able to help you which gives you a bit more time to look into more permanent solutions. Creditors will no longer be able to hassle you for payments you’re struggling to make, instead dealing with our liaison officer who will in turn provide you with supportive advice and financial guidance. Ensuring that you rectify your financial difficulties sooner rather than later will help you avoid falling into the ever-expanding group of the elderly poor as you move towards your later years. Contact one of our Trust Deed specialists on 01412210999 today and take the first steps out of the red and towards the black.

How Does a Trust Deed Affect My Property Assets?

Posted on by Craig Stocks

Property Assets While In A Trust Deed

When searching for advice regarding Trust Deeds in Scotland, many researchers are concerned whether the property they live in will be affected. Specifically, many are concerned about whether they will lose their home. If you have invested a lot of time and money into your property and you have worked hard to keep it in good repair, it is likely you won’t want to take any risks that could threaten everything you’ve worked towards. Or, you may be living in rented accommodation and are concerned about telling your landlord about your situation. Trust Deed Scotland is here to make it clear just exactly how a trust deed will affect your property assets.

Rented Accommodation

If you are arranging or seeking advice on Trust Deeds in Scotland, there is no reason for your landlords to know anything about it as you are not obliged to tell them. However, if you decide to move to a new property and a credit check is done on you (a compulsory for some rental agencies), you are guaranteed not to pass. If you are in a rental situation with your parents, their property will not be taken into account when arranging your Trust Deed. The assets of others will only be taken into account in a Trust Deed arrangement if they agree to it. A Trust Deed is based on your assets only unless others volunteer to help you.

Homeowners

If you are a homeowner, you are not obligated to transfer your property to your Trustee and can request it not to be part of the agreement with your creditors. If you have equity in your property that could be released to pay off your debt, your creditors may not like the fact you have not transferred your property over. At this point, your creditors may refuse to agree to provide you with a Trust Deed. At this point, they will be able to pursue you for any money owed and petition for your sequestration. If your Trust Deed receives a protected status, your creditors will not be able to chase you for money and can only deal directly with your Trustee. However, at this point, you will have to transfer your property to your Trustee. They will then decide the best way is to pay your creditors. You can consider alternatives to a Trust Deed also.

Joint-Owned Properties

If you are not the sole owner of the property, but jointly owned, a Trustee will need the permission of the other owners. It will also need the permission of anyone who has the right to live in the property before arranging a Trust Deed. If your co-owner(s) are not compliant and refuse permission, they have the power to force the sale through the courts. Once a ‘division and sale’ has been granted, the Trustee will sell the property and give the other owner(s) their share of the proceeds. Your share will be used to pay what you owe to your creditors.

Second Properties

If you own a second property, you won’t necessarily have to sell it. It depends on the equity present in the property, whether it’s located in Scotland, the rest of the UK or abroad. If there is a certain level of equity, your creditors may require it to be released at the end of the Trust Deed in order to pay them.

Homes with Little or No Equity

If you are currently in negative equity, or the equity you have is too little to release, your Trustee may still require the transfer of the property to their administration. Sometimes the property is worth more at the end of the Trust Deed than at the beginning. Your Trustee could have a valuation completed at the end of the term to calculate if some of the equity can be released. However, it is also possible to buy out the Trustee’s interest in the property via a one-off payment. This can be paid by you or a third party. It is also permitted to add this sum into Trust Deeds in Scotland for payment along with any other unsecured debts. Once your Trustee has been bought out your property is fully protected. They cannot later request equity to be released if it has increased in value.

Christmas Debt – Will It Ever Stop Snowballing?

Posted on by Craig Stocks

christmas-316448_1280

As Christmas rolls around once more, high streets all over Scotland become busier and busier as the clamour for presents begins to reach fever pitch. While our hyper-consumerist society provides big businesses with huge profits over the festive season, for the normal Scottish citizen it is a completely different story.

According to a recent report released in The Scotsman, it isn’t just this Christmas that is proving to be the source of some extra financial headache. More than one in ten people throughout the country are still paying off their debts from last year, something that is undoubtedly cause for much concern for those of us with numerous outgoings or low incomes. With 12 per cent of people still feeling the strain of last year, Christmas debt seems to be a problem that is continuing to snowball with no sign of slowing down.

In 2013, over a third of people in the country are said to have borrowed money or successfully applied for credit to bankroll the costs of the Christmas period, and a further third of that number still owe creditors over £500. With many short-term fixes such as payday loan companies now readily available for people to temporarily plug their financial holes, it seems that the bigger problem has been widely ignored.

What does this mean for the coming year? Well, according to the report it is looking like this vicious cycle is set to continue. Of all the people that replied to the survey, 12 per cent of people again said that they will be forced to borrow further amounts in order to meet the demands of yet another expensive Christmas. Put into context, only half of those that responded to the survey have said that their earnings alone will cover the soaring costs they are faced with this year.

Ian Williams, part of the organisation that conducted the survey, has said ‘Christmas can be the most expensive time of year for many of us thanks to all of the present-buying and food prep, as well as the travel many of us are expected to do. This might be why some Scots feel the only way they can afford to celebrate is by using credit.’

All of this is symptomatic of Scotland’s wider debt problem. Such accumulation of debt can only lead to deeper financial worries later down the line, and people are being urged to seek help from experienced debt experts in order to remain above water throughout 2015.

Here at Trust Deed Scotland®, our Scottish debt help service is designed to help those with unaffordable debt make positive steps towards complete financial recovery. With Christmas on the horizon, it is important to gain control of your money before the problem becomes too difficult to manage.

The harsh reality of the situation is that once the fanfare of Christmas dies down, your financial issues will be impossible to avoid.

The pressure of creditors in the New Year, a time when everyone is short of expendable income, is one that can cause much stress and strain. With tailored debt advice, we are perfectly placed to ensure you don’t fall victim to Christmas debt this time around.

By contacting our team of experts here at Trust Deed Scotland®, you are making the first move towards a much-desired financial resolution. Whether that be a Scottish Trust Deed, Debt Arrangement Scheme or alternative solution.

British Economy Uncertain Throughout 2015

Posted on by Craig Stocks

banknote queen looks depressed
With less than 100 days left to the date of May’s General Election intensity around politician’s current and future policies is beginning to gather momentum. In all elections the state of the country’s finances is likely to provoke much debate and disagreement, especially with austerity measures over the last few years implemented by the coalition government.

Just like in 2010, the main issue at this upcoming election will again revolve around Britain’s economy recovery from the global crash. With a seven-party leadership television debate set to take place, voters are going to be hearing a lot of potential changes that will affect the whole nation.

Leaders of the Conservatives, SNP, Labour, Liberal Democrats, Green Party, UKIP and Plaid Cymru are expected to contest three debates during April towards the end of campaigning. Whatever the dates or parties there you can bet talking about Britain’s economy over the last five years will be high on the agendas of all present in front of television cameras. Thousands of Scottish residents have lost their jobs with those employed finding budgeting quite difficult because of higher living costs without higher wages.

David Cameron will undoubtedly point out that 2014 was the year of Britain’s fastest-growing economy since 2007, but opposition to the coalition will list some shortcomings over the last quarter of 2014, a period when GDP dropped by 0.5 per cent. In the fourth quarter construction output lowered by 1.8 percent. Away from this island, experts are concerned about the future financial outlook around the world.

Chris Williamson, an economist at Markit, warned of an unstable world economy. He said: “The eurozone is potentially entering a new phase of political uncertainty arising from the anti-austerity Syriza party victory in Greece. The upcoming general election in the UK also poses a threat to stability in the event of an inconclusive outcome.

“There’s also the possibility of financial market stress if the US starts to hike interest rates later this year, and geopolitical risks such as the escalation of the Russian-Ukraine crisis likewise pose a threat to global stability.” Thoughts echoed by Harper McDermott, leading insolvency practitioners in Scotland.

Worldwide financial stability is craved by national leaders along with citizens who are finding difficulties with regular payments, particularly after Christmas where resources are stretched and the first credit card payment due is a harsh reflection of our nation struggling to make ends meet.

Debt specialists and charities are expected to take a big increase in February compared with November.

Fortunately, at Trust Deed Scotland we offer tailored and experienced debt advice in Scotland for everyone in financial arrears.

We are committed to giving our clients an affordable monthly repayment plan that will put an end to their economic uncertainty and allow them to enjoy their free time rather than worrying about the state of their bank account. If you are able to make regular payments then you should be able to keep your home or property as well as your car.

The future of Scotland’s economy may be uncertain, but giving Trust Deed Scotland a call will certainly deal with your money problems.

Trust Deed Scotland TrustPilot

Posted on by Craig Stocks
GLASGOW, July 2015 – Trust Deed Scotland, the leading Scottish Trust Deed and Debt Arrangement Scheme Scotland (DAS) personal finance restructuring company with offices in Glasgow have achieved a new level of success with 5/5 customer satisfaction and thousands of reviews. The company has received 5-star approval from customers via TrustPilot, an online review platform where customers can leave comments about all kinds of businesses, from e-commerce to florists.

Trust Deed Scotland TrustPilot – No.1 Rated

Debt Relief Service –  No.1 Rated in Scotland. Credit Debt Services –  No.1 Rated in Scotland. Customers of Trust Deed Scotland commended the firm and left debt advice reviews for its “excellent service”, professional advice on debt management and compassionate and understanding advisers. Scottish government figures show that many people in Scotland today are struggling under large piles of household debt, from spiraling credit card debt to mortgage payments and arrears, personal and car loans and more, including hefty council tax bills. The financial, mental pressure and stress in managing large sums of household debt can often be overwhelming. That is why the government has brought in revised legislation to tackle the widespread problem of personal debt, so that it’s clearer and easier to deal with.

Trust Deed Scotland TrustPilot – Scottish Trust Deed Service

Trust Deed Scotland’s Scottish Trust Deed services are available to anyone living in Scotland who has personal debts of more than £5,000. The Debt Arrangement Scheme Scotland is available for those with typical total debts over £3,000 but this is a general guideline and can be set up with as little as one debt included in the plan. Advisers appraise each applicant’s individual situation and work out a plan that’s suited to them. That means once all the debts are bundled together and a workable repayment plan is devised, people only pay back what they are actually able to afford. Typically, it takes around four years for clients of Trust Deed Scotland to clear their debts. What’s even more beneficial for people is that their monthly debt repayments are substantially lower than what they had been paying, leaving them with far more disposable income to pay for other items. Trust Deed Scotland offers tailored, friendly and confidential debt advice. At the outset, people burdened by large amounts of debt can sometimes feel a sense of shame at how it has all gotten out of control. Trust Deed Scotland’s Scottish debt help advisors work to ensure no one is judging them – one reason for the near-total satisfaction of their clients.

Trust Deed Scotland TrustPilot – Reaction

A company spokesperson said they were delighted with their Trust Deed Scotland reviews. “We are happy to be helping people all over Scotland with their debt problems, offering a viable way out of what for many is an absolute nightmare. We’re thrilled that our customers are so happy with what we do for them. We’re similarly pleased with reviews our customers are leaving on our Google reviews page too.” the spokesperson said. For more information about Trust Deed Scotland and its range of Scottish debt solutions, call 0141 221 0999. Find out more about Trust Deed Scotland, or contact Trust Deed Scotland today over WhatsApp.

10 Trust Deeds Misconceptions

Posted on by Craig Stocks
At Trust Deed Scotland® we speak to people every day who have been misinformed in the past about Trust Deeds and how they affect the people who enter them in order to step towards a brighter future. Below are 10 of the most common Trust Deeds misconceptions about Trust Deeds straightened out.  
  1. You will lose your home if you enter a Trust Deed.
This used to be a problem but legislation introduced the form 1B which is addressed at the initial stages of the process, before the Trust Deed is finalised. It ensures a valuation of your property is done and that your property is eligible for protection, before you enter into the Trust Deed.  
  1. Your details will be put in the newspaper if you enter a Trust Deed.
In the past, advertisements were place in the Edinburgh Gazette but this is no longer the case. All those who enter into a Trust Deed are placed on the Accountancy in Bankruptcy (AiB) Register and stay there until 1 year after your trustee discharges from the Trust Deed. Most people have never accessed this unless they work in insolvency and debt solution, so it is not as though your family or friends will come across it by accident.  
  1. Trust Deeds and Bankruptcy/Sequestration are the same thing.
Trust Deeds and Sequestration (Scottish Bankruptcy), have many important differences. Bankruptcy remains on your credit file and you will often be asked on application forms if you have ever been declared bankrupt which could affect your ability to obtain credit indefinitely. Trust Deeds do not show on your credit file 6 years after entering into one. If you are a homeowner and you become bankrupt, you would lose your property, which is not the case with a Trust Deed. Once your Trust Deed term has been completed, you would not make any further payments to your debts but with bankruptcy, depending on your income, you may have to pay into your debts after your bankruptcy has been finalised. If you enter into a Trust Deed, there are government guidelines to ensure you have enough income each month, after your Trust Deed contribution to cover your necessities. This includes things such as: food; housekeeping; rent/mortgage; council tax; gas; electricity; home insurance; life insurance; telephone; internet; television and other expenditure. The guidelines with bankruptcy are much more stringent and you would lead a heavily restricted lifestyle. You also need to pay £200 to apply for bankruptcy, whereas all Trust Deed fees are included in the agreed monthly contribution.  
  1. Your family, friends or employer will find out you are in a Trust Deed.
In the majority of cases, you don’t need to tell anyone at all you’re entering a Trust Deed if you don’t want to. The exception is, people in certain lines of work, (usually positions of high authority or financial responsibility), check your contract and terms of employment or HR department if you are unsure if this applies to you.  
  1. Your income is too high or low to enter a Trust Deed.
Each Trust Deed is considered on a case by case basis. Your income and expenditure, debt level and who your creditors are can all play a part in the process. If your disposable income is high, you may pay a larger contribution than some other people but in the majority of cases, this contribution is still vastly less than what you would be paying prior to entering a Trust Deed, all interest and charges would be frozen and you would write off a percentage of your debt. If you are a low earner you can still qualify if someone you know can act as third party to ensure the contribution will be met each month. Once you discuss your personal circumstances with a debt advisor, they can give you an indication of what to expect. The majority of cases we deal with do not have any problems relating to this.   Try our Trust Deed Wizard tool to see how we could help you turn your finances around.
 
  1. You won’t be able to get credit in the future if you’ve been in a Trust Deed.
You won’t be able to get credit while you are in the Trust Deed but once you complete your agreed Trust Deed term, you can begin applying for credit again and rebuild your credit history. The Trust Deed will show on your credit file for 6 years in total, (from the date it was entered). As most Trust Deed terms are 48 months, this means it would show on your credit file for 2 years after you are discharged from your Trust Deed. During this two year period you may find it more difficult to obtain credit but you can begin rebuilding your credit score. See our blog, How Trust Deeds affect your Credit Rating, for advice on how to rebuild your credit score.  
  1. You would have to give up your mobile phone, Sky/Virgin/Netflix television and other direct debits in other to enter into a Trust Deed.
As stated earlier, when people enter into their Trust Deeds, there are government guidelines in place to ensure you can cover your monthly necessities and your Trust Deed contribution. As long as your outgoings stay within these guidelines, you will not have to cancel any of your direct debits. Only excessive expenditure is not permitted as it would suggest you could contribute more to your debts.  
  1. Entering a Trust Deed is something to be embarrassed or ashamed about.
This is simply not the case. Although you may feel like you are the only person you know struggling with debt, we help thousands of people each year. The chances are you know or have come into contact with many people who are in a Trust Deed but you simply didn’t know it. We’ve already given advice to over [volume] people in Scotland, for over a decade. People get into problems with debt for many different reasons and the fact you are accepting that you need some help and want to get your finances turned around shows you are responsible and committed to changing your life for the better.  
  1. You can shop around to find the lowest Trust Deed contribution.
Your Trust Deed contribution is calculated based on what your debt level is, what your creditors will accept and the amount of disposable income you have. This figure will not change based on what company you deal with as they are all working within the same government guidelines. The importance of what company you choose lies in the training and quality of the debt advisors and how much support you will be given throughout the process. Our advisors are here to help every step of the way from the second you pick up the phone to when you complete your Trust Deed. See our reviews page for thousands of independently written Trust Deed reviews.  
  1. Entering into a Trust Deed would affect the credit of others living in your home.
Trust Deeds are an individual process and only affect you. The only way it may affect your partner is if you have joint debts. Otherwise, it will have no effect whatsoever on the credit history of anyone else living in the property and they needn’t even know you are in a Trust Deed as all correspondence will be confidential. We hope that reading our 10 Trust Deeds Misconceptions guide has helped to appease any anxieties that you may have about whether you would be eligible for a Trust Deed. For more information, find our downloadable Scottish Debt Help Guide or Contact Trust Deed Scotland today.

Recommended further reading

Is a DAS worth it? Is a Trust Deed a good idea? Differences between IVAs and Trust Deeds What debt does a Protected Trust Deed include?