Who should use a Trust Deed?

Your decision to use a Trust Deed to solve your debt problem will depend on your individual financial circumstances and attitude towards repaying your debt. In many cases it will be the right solution but it is by no means suitable for everyone.

Note: A Trust Deed is only available for those living in Scotland. If you live in England, Wales & Northern Ireland this solution is not available and you will need to consider alternative solutions such as an Individual Voluntary Arrangement.

A Trust Deed can only be used to deal with unsecured debts. If the debts you are having difficulty with are secured such as your mortgage, a Trust Deed may not be suitable.

Generally speaking you will need unsecured debts totalling £5,000 and be able to pay at least £100 a month to start a Trust Deed. Because the Trust Deed payment period is normally only 4 years it can resolve a debt problem far faster than a Debt Arrangement Scheme where you have to continue paying until 100% of your debt is repaid.

If you are renting your property or sharing with others a Trust Deed will certainly be an option for you as long as you can maintain the necessary monthly payments into the arrangement.

Homeowners can also benefit from the Trust deed solution because of the legal protection it gives their property against the threat of charging orders. However if you are a homeowner you will be required to value your property and pay 100% of your share of any equity into the agreement.

Other Debt Solutions might be suitable for you

A Trust Deed is not the only debt solution which might be suitable to resolve your debt problem. Before making your final decision to apply for a Trust Deed you should also consider the other available debt solution options. For more information please see: Personal Debt Solutions

Additional information

More information about the Trust Deed solution is available in the left hand column. However only a brief overview is given here. For more details and advice please see one of our dedicated information websites:

http://scotland.beatmydebt.com/

Take action

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.

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