As a debt advice charity, Debt Support Trust provides the full range of debt advice for people living in Scotland with money worries. The charity is based in Scotland and has helped thousands of people with telephone, face to face and internet debt help. Whether you need debt advice in Glasgow, Edinburgh or Aberdeen we can help you across Scotland.
Pay One Affordable Amount To Your Debt Every Month: Scotland Only Debt Solution
We’ve all heard the expression “can’t get blood out of a stone”. It means you can’t pay what you don’t have. This is something many Scot’s encounter with their debts – they can’t afford to repay the money they have borrowed. However, perhaps there is another option, such as the Scottish Trust Deed.
The Trust Deed Scotland only option allows a person to pay what they can afford towards their debt, usually for a fixed 4 year period. After the Scottish Trust Deed has concluded any remaining debt is cleared and written off. This allows you to restart financially.
There are some negatives of entering a Trust Deed too. These negatives include receiving a 6 year default added to your credit file. This means your ability to get credit after the solution is finished can be harder or more expensive. During the course of the Trust Deed you should not take out any more than £500 of credit without your Trustee being made aware.
Criteria For A Trust Deed in Scotland
Do you want to check if you qualify for a Trust Deed? Ask yourself:
1. Is your debt £5,000 or more?
2. Are you in employment? If you earn less than £247.50 per week and don’t have any assets then you may be better considering a Low Income Low Asset bankruptcy
3. If you can afford to repay £100 or more towards your debt every month? You must be able to repay 10% of the money back towards your debt over a 4 year period plus any Trust Deed admin fees.
4. Your level of equity in your assets is not greater than the level of unsecured debt?
If you think you qualify for a Protected Trust Deed then you should speak to Debt Support Trust on 0800 085 0226.
If you are considering a Trust Deed as the perfect debt solution for you, then you can include debts, such as
- Personal loans
- Credit cards
- Catalogue debts
- Unpaid mobile phone contracts
- Overpayment of benefits
- Payday loans
- Logbook loans
- Arrears of council tax, gas, electricity or any other household debt
- Outstanding bills to companies which are not secured against your property
You can’t add in secured loans, arrears of CSA payments or recent student loan debt into your Trust Deed. If a debt is fraudulent then you must repay this debt too. If you would like to know whether your debt can be included in a Trust Deed then speak to our debt charity experts today.
Example of a Scottish Trust Deed
There are fees and charges associated with a Trust Deed so we’ve created a typical example. You make one monthly affordable payment to your Trustee. In this example, the person will be able to afford £200 per month towards their debt.
Level of debt = £36,000
Monthly repayment = £200
Total repaid = £9,600 (£200 x 4 years/ 48 months)
Trustee’s fees for managing the Trust Deed = £4,420
Trust Deed costs = £1,200
Remaining money for the creditors = £3,980 (11% of debt)
Outstanding debt written off = £32,020 (89% written off)
If you don’t maintain payments to your Trust Deed you could face bankruptcy. Failure to complete the Trust Deed could mean your agreement is cancelled. If you inherit money or receive a windfall you could be asked to repay all of your debt along with the administration and Trustee fees.
Debt Arrangement Scheme or Trust Deed?
There is often more than one debt solution which you could be applicable for. Another debt solution you could be suitable for is a debt arrangement scheme. This is a similar debt solution to the Trust Deed however it’s not a form of insolvency and you must repay all of the debt.
In the above example, a debt arrangement scheme would have taken 15 years so the Trust Deed would have been the best advice. If the debt were to be £12,000 then you may decide to repay all of the debt in a debt arrangement scheme instead of entering the Trust Deed.