Life on a Trust Deed

Many people misunderstand the potential implications for life on a Trust Deed with many assuming they will have no money in their pocket, they will be in debt to the bank for many years and basically their lives are over. The truth is that life on a Trust Deed will eventually be a million times better than life before when you used to wake up in the middle of the night wondering who would knock on the door next for their money and where your next meal was coming from.

In simple terms a Trust Deed allows you to reduce the overall balance of your debt and make payments for an agreed period which will be based upon your ability to pay not what is owed. From the bank’s point of view they would rather have something than nothing and there is no benefit in crucifying people for ever and a day if they are unable to repay their overall debts and the cost of trying to obtain repayment is not cost-effective.

While a Trust Deed will mean you have no access to other forms of credit and your trustees can at any time request further information and further details about your financial situation. In reality, so long as you stick to the guidelines and the agreement, you will only hear from your trustees on an annual basis to update their records, update your financial situation and basically ensure that your repayments are going through on time.

One of the major problems for those in debt in Scotland is the fact that many people do not know how much debt they actually have and automatically assume the worst. By assuming the worst this can make a difficult situation even worse and by burying your head in the sand you ensure that the problem is never solved and never goes away. While a Trust Deed, or bankruptcy, is by no means something you would wish to experience in your lifetime, if you are in debt there is no point fighting forever and you should take professional advice.

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