Facts about Trust Deeds

If you're thinking about a Trust Deed, it's important to know all about the pros and cons. When you talk to All About Money, we'll discuss your situation in depth.

If we are not convinced that a Trust Deed is the ideal solution to your debts, we will take you through all the alternatives and find the one that's right for you.

Before you go any further, take a look at the following questions:

• Do you have significant unsecured debts (£10,000 or more) to multiple creditors?
• Are you unable to meet your monthly repayments?
• Do you have a reliable income - can you afford to make a regular payment to your debts for the next 3 years?
• Are you a resident of Scotland?

If you answer 'no' to any of these, a Trust Deed probably isn't the answer to your debt problems - call us on freephone 0800 195 2911 and find out which debt solution is right for you.

If you answer 'yes' to all four questions, then a Trust Deed could be exactly what you're looking for. However, it's important that you understand the pros and cons.

• Legally binding agreement
• Have one tailored monthly repayment
• Potential to stop interest on your debts
• Once complete you will have no further liability to your creditors
• Know exactly when you will have repaid your debts
• Legal protection from further action by your creditors
• Avoid the social stigma and financial consequences of sequestration
• Protect your career - no statutory restrictions on employment

Cons of a Trust Deed

• Requires commitment - regular payments must be made for the full term (normally 3 years)
• You can't take out further credit while your Trust Deed is running
• You may be made bankrupt if you do not stick to the terms of the Trust Deed
• You may have to:
  • Remortgage to release the equity in your property
  • Pay extra if you earn a bonus or overtime
  • 'Trade down' to a cheaper vehicle or sell other valuable assets
• You will repay more of your debt through a Trust Deed than you would through sequestration
• Your Trust Deed will stay on your credit file for 3 years after its successful conclusion, which may make it more difficult for you to get credit
• The granting of the Trust Deed is advertised to creditors in the Edinburgh Gazette

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Subject to eligibility and acceptance. Fees Payable. Debt write off applies only to unsecured debts on completion of a Trust Deed, alternative solutions may be offered. If your Trust Deed fails, it could lead to Bankruptcy. Your ability to obtain credit will be affected for 6 years. Homeowners may be required to release the equity in their property. Calls may be recorded. Calls from UK landlines are usually free, but you should check with your network provider for full details of your service.