Are you struggling to keep up with repayments on loans, credit cards and other unsecured debt? If so, you’re not alone, as it is a very common problem. Over the years our circumstances inevitably change, and this can result in the amount of disposable income you have available decreasing. As a result, you may find it hard to keep up with repayments on your credit agreements, and once you begin to fall behind, it can be difficult to get back on track. This can become a stressful experience, and can lead to things getting even more out of hand.
One of the main problems you may encounter is not knowing who to talk to; if you live in Scotland, we may just have the answer you are looking for. Scottish residents who have more than a certain amount – £5000 at the time of writing – of unsecured debt, and who qualify in other ways, can enter into what is known as a protected Trust Deed. This is a legally-binding agreement designed to help manage all your debts with a single monthly payment. In England and Wales an alternative is available known as an Individual Voluntary Agreement, which offers similar solutions. How does a Trust Deed work?
How it Works
A Trust Deed can only be agreed with and set up by a licensed Insolvency Practitioner (IP), so you know you are getting a deal that is legally binding and above board. There are many such companies, and we recommend you check out the Creditfix Trust Deed Scotland pages on their website for all the information you could possibly need. The purpose of the agreement is to effectively consolidate all your unsecured debt into one monthly payment. The amount to be paid will be one you can afford, based on your monthly income and outgoings.
Your single monthly payment will go to your IP, who becomes your trustee once the agreement is signed, and they will distribute funds among your creditors. You, and they, deal only with the IP for the duration of the agreement, so no more threatening and worrying letters will come through your door. The agreement will usually last for four years, after which time any remaining debt balances will be legally written off. It’s a good deal for you, and also for your creditors who will get more money back than with alternative methods of insolvency.
Talk to the Experts
We strongly recommend you talk to the experts about taking on a Trust Deed, as while it is not the best solution for everyone, it may be the right step forward for you. Creditfix has many satisfied clients who have taken advantage of its expert services, and who have successfully relieved themselves of the stresses of unsecured debt problems.
If your credit is getting out of hand, get in touch right away and one of the friendly team will be more than happy to answer any questions you may have, and to help you put the wheels in motion for a debt-free future.