What are the advantages of a Scottish Trust Deed?by Shishir Del R. Writer
Having to consider different debt management options is never an easy task. However, with the right advice and experienced Trustee in place, there’s certainly no reason why you shouldn’t be able to benefit from a Scottish Trust Deed to get your finances back on track. In this article we take a look at the key advantages of entering into a Scottish Trust Deed.
- Your Trustee will manage everything on your behalf.
Once you’ve taken the time to choose the right Trustee for you, he or she will administer your debt arrangement without you having to worry. In fact, once you’ve provided the relevant information to your preferred advisor, you can simply rest assured knowing that everything will be done for you.
Entering Your Trustee will need to put a good proposal together for onward submission to your creditors and thereafter will continue to manage the arrangement going forward. This will typically include regular reviews and in some cases, might even require that the arrangement be managed to reflect any change in your personal circumstances, such as an unexpected windfall, redundancy or other major events. can be quite a complex process and certainly isn’t something you can do yourself.
- Any further charges will be frozen.
Once your creditors have accepted your proposal then they won’t be able to add any additional costs or charges to the outstanding amount (such as late payment fees, additional interest and so on). This mean that the amount you owe won’t increase.
- Your creditors will be prevented from contacting you directly.
If your Scottish Trust Deed is accepted then your creditors will no longer be able to contact you – whether that be by phone, correspondence or even through home visits. This in itself is a massive relief for most since being in debt can have very serious consequences on a debtor’s life – not to mention, of course, their health.
- You’ll only have to make one repayment every month.
Instead of struggling to pacify numerous creditors, all your repayments will simply be made through one monthly payment to your chosen Trustee. Thereafter, he or she will distribute funds to your creditors (including their own fees) so you won’t have to worry about trying to juggle finances anymore. The principle, in essence, is almost the same as a consolidation loan.
- Any outstanding debt at the end of the arrangement will be written off.
Provided that you pay your monthly instalment to your Trustee on time, then any remaining debt at the end of your payment term will simply be written off. This means that your creditors won’t be able to pursue you for any remaining balance. Consequently, you can simply concentrate on rebuilding your credit score and looking forward to a much more positive future as far as your finances are concerned. Some debtors even choose to put the same amount of money away each month – even after the arrangement has ended – so that they can start saving for a rainy day; or even a well-deserved holiday abroad!
Created on Feb 14th 2019 08:49. Viewed 455 times.