Trust Deed Pros and Cons

Understanding the pros and cons of any financial product is vital in order to establish the best route to financial freedom. Before you decide to go ahead read our comprehensive list of the pros and cons associated with Scottish Trust Deeds.

The pros…

1. Completely debt free in 36 months or less
   Unlike an IVA, The Trust Deed programme lasts only 36 months (3 years). If you owe £5,000 to a credit card company with an average interest rate of 27% APR your minimum repayments would be around £110 per month. Approximately £82 of this will be going on interest which means it would take you nearly 14 years to repay.
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2. No setup fees
   All our fees are charged directly to the creditors so there is no setup charge to you.
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3. Write off up to 90% of your debts
   As a Trust Deed is Government legislation 90% of your debt can be legally written off with no comebacks. For example; If you owe £55,000 you could have up to £49,500 completely wiped off. Consolidate all your unsecured debts Pay only one payment each month as apposed to several different payment to different creditors.
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4. Freeze Interest and Charges
   Once in a Trust Deed programme all interest and charges are frozen which means your debt will no accumulate.
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5. No legal action
   Your creditors cannot take legal action against your once you have entered into a Trust Deed meaning there will no court attendances.
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6. Instantly reduce your monthly outgoings
   Reduce your monthly unsecured repayments down to as little as £150 Protect assets from repossession Protect your home and car from repossession once the Trust Deed has become protected.

The Cons…

1. Your credit rating will be affected
   By entering into a Trust Deed will affect your credit rating, but the likely hood is if you have been struggling to pay your debts and missing repayments it has already been affected so it wouldn’t really make any difference.
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2. You may struggle to get further credit in the future
   You may find it harder to obtain further credit in the future but if you have been struggling with your debts for some time it is highly unlikely that you will want to get into further debt again!
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3. Some occupations need approval
   Some specific occupations may need approval from your creditors, i.e. If you work in the financial sector. Contact Us for clarification on this.