If you start a Trust Deed you will stop making your normal monthly payments to your creditors. This means that your accounts will go into arrears or further into arrears.
As a result of this your creditors are likely to record missed payments on your credit file and also issue you with a default notice which will also be recorded. In addition your Trust Deed will be listed on your credit file. This will have a negative effect on your credit rating and make it more difficult for you to borrow money.
The record of your Trust Deed will remain on your credit file for 6 years. Your credit rating will not start to significantly improve until this time has passed and the record has been taken off your file.
Remember if you are insolvent and considering a Trust Deed, your credit rating is likely to become worse whether you start the solution or not. If you are in a position where you cannot pay your debts you are likely to start missing payments to your creditors even if you do not start a Trust Deed. As a result your credit rating will be negatively affected with missed payment and default notice records anyway.
If you start a Trust Deed or any other debt management solution you have the opportunity to get your debts under control and work towards getting a better credit rating in the future.
Only a brief overview of how a Trust Deed might affect your credit rating is given above. More information can be found here: Debt Solutions & Credit Rating
Read more – Our debt experts have written thousands of articles about solving personal debt problems. Read some of these to find more about which debt solution is best for you.
Ask our online experts – We have debt experts on hand to provide unbiased, accurate advice. Ask your questions in one of our debt forums, via our live chat facilities or by traditional email.
Call us direct on 0844 544 8850 – All conversations with our expert advisors are held in the strictest confidence.