Category: Credit Card Debts

How long does a Trust Deed last in Scotland

Posted on by Craig Stocks

How long does a Trust Deed last in Scotland?

Trust Deeds offer a way out of unaffordable debt and the chance to rebuild your credit once the Trust Deed term has ended. The Trust Deed is a debt solution that’s only available to residents of Scotland and typically lasts for 48 months although there are some factors that can affect the length of time that a person would be in a Trust Deed. One of the major factors in the length of your Trust Deed is whether or not you own your own property. Many individuals have concerns that their house might have to be sold when they enter a Trust Deed, but this is not automatically true, as the outcome largely depends on the level of equity available in the property. A popular alternative to a Protected Trust Deed in Scotland is known as the Debt Arrangement Scheme (DAS) which offers much of the same protection that a Trust Deed does, but without the ‘debt write off’ aspect. However, depending on the total debt you have, and your ability to repay – it is possible that you could repay your debt back quicker than the time it would take you to repay your debts using a Trust Deed.

Using property as part of a Trust Deed

When considering how long does a Trust Deed last in Scotland – If your home is mortgaged, the equity figure will be the property’s value minus the amount needed to repay the mortgage. There is minimal benefit for the Trust Deed administrator to use the property as part of a settlement if the equity is minimal. Similarly, should you decide to sell your home, you may be able to end the Trust Deed earlier than the initial 48 months if your creditors are repaid in full plus interest and all the Trust Deed costs have been covered.

Where a Trust Teed lasts longer than four years

A Trust Deed can last longer than the standard term of 48 months in certain circumstances:
  • If the Trustee negotiates low monthly payments in comparison with your overall debt, it may then be necessary to extend the Trust Deed term so that creditors will be more likely to approve the arrangement.
  • Some other Trust Deed companies charge excessive fees when arranging Trust Deeds, which results in a longer-term than forty-eight months.
  • If you were to inherit money or receive a windfall during the term of your Trust Deed, it’s likely that the Trustee will either increase your repayments or extend the Trust Deed term to provide your creditors with a higher return.
  • There is also a possibility that your personal circumstances could change during the initial 48-month term. Redundancy, or being unable to work due to ill health is two examples. In these cases, your Trustee may allow you to take a payment ‘holiday’ but extend the term at the end of the Trust Deed.
It’s important to take care when approaching Trust Deed companies to ensure they are reputable – in particular, be wary of excessive Trust Deed fees that might result in a needlessly extended term. Trust Deed Scotland has gathered over [reviews] five star Trust Deed reviews on Trustpilot. A signal that we are a Trust Deed provider that can be trusted to give you the correct advice.

What happens at the end of a Protected Trust Deed?

  At the end of your Trust Deed term, any debts remaining are written off, and your details are removed from the Trust Deed register within three months. You’ll also receive a certificate of completion from your Trustee to confirm that you’ve met your obligations. Where your credit file is concerned, it typically will be amended to show that the Trust Deed has been successfully completed. It will be difficult to obtain credit or other borrowing for several years after the Trust Deed. Approximately how long after a Trust Deed could you get a mortgage? This largely depends on the lender, but it’s likely that you’ll pay a higher interest rate than a ‘standard’ mortgage if you’re successful with an application. Trust Deed Scotland® has extensive experience of negotiating trust deeds on behalf of our clients and can provide reliable and comprehensive trust deed information. The length of a trust deed is an important aspect of the arrangement, as it determines when you can start to rebuild your financial life. Call one of our debt advice experts to find out more about your options.

Is a Trust Deed a good idea?

Trust Deeds can be a valuable aid to help you manage unaffordable debts and look forward to a lift after debt. However, they are not right for everybody and there may be more suitable debt management solutions for you. You can call us on 0141 221 0999 for confidential advice tailored to your needs. Our non-judgemental and experienced debt advisers have helped over [volume] people and that advice includes all other debt management techniques in Scotland.

Trust Deed alternatives?

There are alternatives such as the Debt Arrangement Scheme. Minimal Asset Process and Sequestration. The solutions offered to you will depend on your affordability and your situation. Every person’s situation is unique and therefore the options open to them will vary from case to case.  You may find that when you ask the question of how long a Trust Deed lasts in Scotland, how long it will take you to become debt-free if you pursued these other options.

Where else can I get money advice in Scotland?

To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.

Credit Card Debts Scotland

Posted on by Craig Stocks
Credit Card Debts In Scotland are set to increase next month due to what a UK regulatory body describes as persistent debt issues. Persistent debt is classed as an individual who pays more in interest and charges than what they have paid off from their balance. If you have been struggling to make your minimum payment over a period of 36 months, you could find that you are no longer able to use the facility from next month onward. The rules which were designed in 2018 to reduce the cost of borrowing by encouraging customers to pay back their credit card debts sooner, where they can afford to do so. Trust Deed Scotland have spoken to thousands of worried clients over several years, many of which have had two or more credit card debts as part of their overall debt amount and are concerned that credit card lenders may not be doing enough to explain the process to their customers. The response varies from lender to lender. Amanda Hendry of Trust Deed Scotland advised “Whilst we understand that these measures were taken to help individuals manage their outstanding credit card debts, there has been an overall lack of communication or sense of urgency shown by the credit card lenders. There may be a vast number of people in Scotland holding hidden problem debts across multiple credit cards, personal loans and bank overdrafts. These debts will come to the surface and become unmanageable to the extent that priority debts could be missed as a result.” Virgin Money, the owners of Clydesdale Bank are said to be suspending their customers’ accounts from March 2020 onward alongside TSB. Nationwide will start suspending credit cards with persistent debt issues from February. HSBC, Royal Bank of Scotland, Santander and HBOS have yet to comment.

Credit Card Debts Help

If you have credit card debts and live in Scotland, there are options open to you where you can legally freeze interest and charges and get your monthly debt repayment amount back down to a level that is affordable, based on your own circumstances. Trust Deed Scotland can give you tailored, confidential advice on these solutions. Including the Debt Arrangement Scheme and Trust Deeds. If you are worried about credit card debts, give us a call on 0141 221 0999 and our experienced debt advisers will talk you through the pros and cons of these solutions and alternatives.

Should you use a Credit Card or Personal Loan?

Posted on by Craig Stocks
If you’ve been trying to decide whether or not to use a credit card or personal loan for finance there are many things to consider. Depending on your credit limit and the price of what you are purchasing, you may be surprised to learn a credit card may work out more cost-efficient than a personal loan. Many credit cards come with the perk of an interest-free period. These periods vary in length but the maximum on offer is longer than a 2 year period. If you are able to clear the debt off within this time you will save money as you won’t be paying the interest on a personal loan and clearing the debt. If you haven’t cleared the debt off within the specified period, depending on you your credit score, you could potentially transfer the remaining balance to another interest-free credit card to finish paying the debt off interest-free. If you don’t think you would be able to pay the debt back within the interest-free period, you could look for a card with a low-interest rate that would last for the duration of your payments. You could spend less on interest than you would with a personal loan. Check how much you would be spending monthly and see what is best for you. If you’d like help with your finances, Trust Deed Scotland can provide you with experienced debt advice to help you make the best decision for you. A Trust Deed is one of several options to get you back on track. Try the Trust Deed Wizard tool now to find out more, or take five minutes to read our article Is a Trust Deed a good idea?
  Depending on what you’re buying and where you’re buying it from, you may not be able to pay by credit card but only by debit or cash. If this is the case, you could get a card that allows money transfers. This means you could transfer money to your bank account which you can then withdraw or spend by debit card. Doing it this way will cost extra as there will be a fee but it means you can pay up the card as normal and get access to the funds to pay companies who don’t accept credit cards. Again, check the fees and interest rates and calculate if you would spend less money overall than you would with a personal loan. See our Debt Advice Reviews for thousands of independently verified reviews showing how we’ve helped customers improve their quality of life. If you need a substantial amount of money, you may be unable to get a credit card with a high enough limit. In that case, you would need to go down the route of a personal loan. Borrow the smallest amount possible in order to meet your needs and choose the shortest repayment term possible that is affordable for you. Make sure you take into consideration what your current incomings and outgoings are and don’t overstretch yourself and put yourself in a difficult position. It’s easy to be tempted into borrowing more and increasing the repayment term, however, you will cost yourself a lot more in interest in the long run. For example, if you borrowed £8 000 at 9% over 4 years, you would pay £1 555.86 in interest but if you borrowed the same amount over 10 years, you would pay £4,160.87 in interest. How much is your overdraft costing in fees and charges? Overdrafts are often overlooked and you could potentially save money every month by considering switching the type of your account or your bank. Another factor to keep in mind is it may cost you less to borrow slightly more. This doesn’t mean borrow thousands more than you’d planned. Check the individual loans interest rates and thresholds and you may find borrowing £4500 costs you more overall than borrowing £5000, depending on the interest rates. Surprisingly, some companies charge up to 33% more interest on a lower loan than a higher one, so you would end up spending more overall once the interest had been accounted for. Make sure to check for hidden costs when considering a personal loan. You are entitled to pay loans off early but you may be subject to a fee which is usually around two months’ interest. You are also able to make overpayments to your loan without charge, (depending on when you took the loan out if it is pre-existing and how much the overpayments are). Have you been given conflicting information about the impacts of bad credit? We’ve dispelled some of the common bad credit myths to enable you to make an informed decision about what step to take next. Many loans have lock-in fees meaning if you want to switch to a cheaper interest rate, you will be fined for moving. In this case, you will have to determine whether it is cheaper to stay on the higher rate of interest or transfer to a lower rate and pay a penalty. It may actually be cheaper to stay where you are depending on how much the fee is. Always check what the early repayment fees are before taking out a loan or check the terms and conditions in your paperwork if you have an existing loan. Finally, remember the interest rates advertised for credit cards and personal loans are representative. This means, 51% of people who apply will receive these rates. The other 49% will pay extra. The only way to find out what rate you will be offered is to apply and this will affect your credit score so do your research before deciding where to apply.

Worried about unaffordable personal loan debt?

For more information see our Scottish Debt Help FAQs or Contact Trust Deed Scotland. Call us on 0141 221 0999 for tailored Scottish debt advice today.

How to Reduce Your Credit Card Debt

Posted on by Craig Stocks
Thousands of residents are currently struggling with credit card debt in Scotland. It can be all too easy to quickly accumulate huge amounts of debt due to high-interest rates and hefty charges. Dealing with your credit card debt is not an easy challenge to face. However, there are a few ways you can reduce your credit card debt before you consider the best way to resolve your other unpaid debts.

Add up the Credit Card debts

The time has come to face the music when it comes to your credit card debt. It can be very easy to stick your head in the sand and ignore the spiralling costs. However, having a good overview of your debt will help you to make a realistic timeline for getting out of it. You may feel uncomfortable seeing the entire total of your debt in front of you, but it will also provide invaluable motivation to reduce it as much as possible. You should also record the interest rate of each chunk of debt too, as well as keep records of balance transfers, cash advances, special offers and multiple balances at different interest rates.

Stop using the cards

Avoiding your credit cards is sometimes harder than it seems. This is a necessary step if you have any hope of reducing your debt as the more you spend, the more your debt will worsen. You should cancel any bills that are paid directly from your credit card and choose to pay online or by post instead. Alternatively, you can pay in cash at the appropriate pay points. The most important thing to remember is that getting out of debt is more important than accumulating any air miles or reward points that your credit card company may be offering. Write down the information of your credit cards such as the account numbers, how your name appears on the card, expiration dates and security codes – keep this information in a safe place while you either cut up your cards or store them in a place that you cannot access. It’s recommended to keep one card in case of a real emergency.

Contact your creditor

There is no harm in contacting your creditor to request for a reduction in the interest rate you are paying. Any small reduction may help to alleviate some of the financial pressure. The worst the creditor can do is say no to your request. If you do ask for a reduction in the interest rates, be aware of balance transfer fees. If you don’t pay off the entire balance by the time the special interest rate expires, you may be subject to even higher interest rates.

Calculate available income

If your income varies from month to month, you should base your calculations on the minimum amount of money you are making per month. From here you will be able to draw up a budget of all the predicted expenses in the coming months. Take into account fixed expenses such as rent, utilities and day-to-day shopping but also insurance payments and any medical bills. You should add the minimum credit card payments as part of the expenses you are expected to pay. Grant yourself a small allowance for extra spending. This allowance will help you to prevent uncontrollable splurging. Any remaining funds should go towards paying off your credit card.

Identify your highest interest rate debt

You should put as much spare money as possible towards the highest interest rate debt that you have. You may find that you have a little leftover each month that can go towards eliminating the expensive interest rates. You may even be able to find extra sources of income in your home, such as selling your old clothes, electronics or any other unwanted goods online or through a consignment shop. Any extra funds that you have available to pay off the highest interest rate will alleviate much of the financial pressure and will help you to tackle your credit card debt one card at a time. There is much you can do to reduce your credit card debt, however, eliminating your debt completely can seem virtually impossible. If you are struggling with credit card debt and you see no way of making the repayments, talk to Trust Deed Scotland. It may be time that you invest in a protected Scottish Trust Deed that will help you to make manageable repayments over a set period. Contact Trust Deed Scotland today for more information.

Debt solutions for Credit Card Debt in Scotland?

Some recent questions we’re being asked by people affected by credit card debts who are considering seeking help with debt include: Is a Trust Deed insolvency? Is a Trust Deed right for me? Is an IVA the same thing as a Trust Deed? What is a DAS? If you need Scottish debt help, give us a call on 0141 221 0999 today.

How The Scottish Cost of Living Has Increased

Posted on by Craig Stocks
Despite supermarkets being full of bargain deals on cut-price Easter Eggs, the growing problem of price hikes remains for everyday necessities. Following the tradition of purchasing chocolate may be fairly innocuous to your finances, but there seems to be little letup on monthly charges that appear to be getting more and more expensive. Britons are becoming poorer across the home nations and it is no surprise that the economy is arguably main issue ahead of May’s Westminster election. Pledges have been made as political parties seek to mobilise support and win marginal seats while thousands of householders worry about their own finances. In this day and age it can be easier said than done to avoid slipping into financial problems. With employment opportunities difficult to come by in some cases there are large pressures on citizens providing for their family and themselves. Affording rent, utility bills and food has become challenging over the last few years with government cuts along with an unstable global economy. Credit card debts have continued to be an issue in Britain, but at Trust Deed Scotland we have helped people get out of the red. Our Trust Deed Wizard tool is a quick way of seeing if your debts can be resolved with our unbiased support. Rising costs have been outlined in the Daily Mirror, and most of these categories are effectively enforced spending because of how necessary they are. We can help people struggling to make such vital payments, though. Our tailored advice has led to a 5/5 TrustPilot rating – we are experienced to say the least when it comes to debt help in Scotland.

Council Tax

The property tax has seen rises in charges in certain parts of Scotland, but even recent freezes have done little to ease the strain of financial instability. Many Brits relied on discounts, but these have either been cut or removed altogether since 2010. Opponents of this charge say it bears no relation on people’s ability to pay, but residents cannot avoid paying this with fees dependent on where they live. Some people qualify for reductions without realising, so it is worth double-checking with your council. Council Tax debt should always be treated as a priority debt, at all times.

Dentist Appointments

It is rare to hear about someone’s joy at the prospect of visiting their local dentist, but this ill-feeling will continue for Scots as prices are to rise. Scottish patients will have to pay 81.61 per cent of their dental treatment cost with the total capped remaining the same at £384. It may be effective by checking the prices between private and NHS treatment as Which? revealed some private dentists offer cheaper fillings than public facilities.

Car Tax

Although there has been some reductions in fuel prices, car tax has risen this financial year. First licence rates have increased by £10 for bands L and M. An effective way of legally avoiding road tax is by owning a car which emits under 100g/km of carbon dioxide. For the majority with money issues this will not be a viable solution, but contacting our team at Trust Deed Scotland certainly will help. If you are worried about your financial situation please take action by contacting us today. We give tailored and helpful debt advice to all of our customers so don’t be bogged down by your living costs and speak to us.