Trust Deeds – a positive way of dealing with unmanageable debt

| July 9, 2013 | 0 Comments


With the worldwide recession still reverberating far and wide, many people have found themselves in something of a difficult position when it comes to their finances. Credit cards that lure you in with the promise of high credit limits can all too often come with uncomfortably high rates of interest. Likewise, many have taken advantage of seemingly attractive loans – without being prepared for the pricey repayments that come with them. However, there is something out there that could take away some of the misery of bad debt for those worst affected – and it comes in the form of Trust Deeds.

A viable alternative to bankruptcy

Put simply, a Trust Deed is a legal way of resolving unmanageable debt, without having to resort to being declared bankrupt. What they do is make an individual’s debt circumstances appear a whole lot simpler. How? By taking away the daunting task of being faced with a monumental sum to pay back each and every month, and replacing it with affordable monthly repayments over a fixed and clearly defined time period. Any remaining debts are then written off (in the majority of cases) after the final payment has been made, leaving the former debtor free to look to the future without a black cloud of never-ending money worries hanging over their head.

Government-approved, and totally transparent

Perhaps the best thing about Trust Deeds (apart from the fact that they have been approved by the government as a fair and reasonable way of becoming debt-free) is that, once set up, the way you pay your debts off is very clear. Once your monthly disposable income has been calculated against your total unsecured debts, an agreement can be worked out as to how much you will pay over a certain period (usually 36 months). The good news for the debtor is that once that period is up (and providing all repayments have been made) any remaining debt is written off – with any potentially disgruntled creditors legally bound by the terms of the Trust Deed.

With the Royal Bank of Scotland now offering Trust Deeds to customers who have run up unmanageable credit card and / or loan bills, this form of debt consolidation (and, ultimately, debt eradication) could see thousands more people throughout Scotland taking the first step towards a debt-free future. Well, that’s the hope, anyway.

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Category: Debt

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