As the recession increases around the UK more and more people are struggling to make the minimum repayments on the unsecured debts. The UK media reported last week that unemployment is now at an all time high with a record 2.4 million people are now without a job. An increasing number of people are looking for solutions to get them out of debt, one which is worth considering is a ‘Scottish Trust Deed’.
What is a Trust Deed in Scotland?
Ask anybody if they know what a Trust Deed is and guaranteed most of them won’t have even heard of one, but a Trust Deed in Scotland is a very powerful and legal tool to get you out of debt. It is a formal agreement between you and your creditors to pay back what you can afford over a set period (usually 36 months). Make all the repayments in full and on time and once this period has elapsed you walk away debt free. It’s that simple!
Is it right for me?
Scottish Trust Deeds are designed for people who have taken out too much debt and are struggling to make the repayments to their creditors. You may have a legitimate change it circumstances, i.e. had a pay cut or lost your job for which a Trust Deed would ideally suit you. If you have a home and are facing repossession it is definitely an option worth considering as it will protect your house from being snatched back by the banks.
What debts can be included?
Any unsecured debts can be included, i.e. loans, credit card debt and store card debt to name a few. It is especially a good option if you have excessive credit card debt as the interest rates tend to be a lot higher than loans, in some cases as much as 30% APR.
Should I not just get a consolidation loan instead?
A consolidation loan is an option but a loan will always get you deeper into debt, not get you out of it! The idea is to get you out of debt effectively without taking on further credit.
What about the interest and charges?
All interest and charges are frozen so your debt will not increase. So say goodbye to that high interest APR! If you are paying the minimum repayment each month on your credit cards you will notice that most of the money goes on interest and charges. Continue like this and you may never repay the total sum! The idea behind a Trust Deed is simple… Get you out of debt not deeper into it!
Will it affect my credit rating?
If you take out a Trust Deed your credit rating will be affect during the duration of the plan. You are advised not to take out any further credit until the 36 month period has elapsed. Once this period is over you are free to apply for credit again.
Do you qualify for a Trust Deed?
For more information and to see if you qualify for a Trust Deed Scotland, use our Free Calculator. We will also recommend the most suitable company to help you. Get on the road to debt freedom!
Also see our #links# FAQ’s for answers to the most frequently asked questions regarding #links# and you will soon see why this Scottish debt solution is becoming so popular