Relieve your debt with a Trust Deed

Written by Admin on August 17, 2011 – 1:34 pm

For many people, the prospect of becoming debt free remains a distant dream, which will never really come true. Sure, they’ll be able to manage their debts with a degree of financial comfort, but they’ll never really actually become debt free.

In fact, it’s almost alien to consider being debt free in this society of ours. On the contrary, we strive to maintain our ability to draw on credit at almost any cost, and many people consider the ability to spend money on credit as they would a status symbol.

But how can someone who is trapped in a borrowing cycle breakout, without declaring bankruptcy? How can they become debt relief from the debts they’ll only really be able to service and never actually be able to fully repay?

Well, in Scotland there is a formal debt solution called a Protected Trust Deed, which acts as an alternative to bankruptcy and offers this chance at some debt relief.

Based on a 3 year fixed repayment term, the Trust Deed is a legally binding agreement that enables the applicant to repay only what they can afford. Their payments being set by an Insolvency Practitioner, who has verified their financial circumstances and adjusted payments in line with affordability. Because the Trust Deed has a fixed term, in most cases, only a fraction of the original debt gets repaid, with the remainder being legally and completely written-off by the creditors.

This can mean in many instances up to 90% of the original debt will be written-off by the creditors, once costs have been deducted.

Whilst the Trust Deed will impact on the applicant’s ability to take out further borrowings for up to 6 years, it nonetheless gives a realistic opportunity to the applicant for becoming debt free within 3 years, and for many applicant’s the prospects of being without credit is one which they have only be able to dream of for many years.

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