A Scottish Patient Recounts a Story of Fiscal Importance

We had the pleasure of serving a patient in our clinic that was from Scotland that educated us during her visit. She wanted us to know about what the risks involved are when you enter into a Trust Deed in  and that although this may seem like a great way for people to get out of debt in a very convenient manner, entering into a Trust Deed in Scotland does come with its own unique attributes. Our patient asked that we discuss the details of her story. Additionally, we decided to do our own research.

Family for trust deed in scotlandFirst, you have to understand that you are entering into a deal with another financial entity that basically acts as a mediator between you and your creditors. Since it is also considered a business, don’t expect that their ulterior motives are purely altruistic.

There are 2 types of Trust Deeds. The first one is a Voluntary Trust Deed and the other is a Protected Trust Deed.

Since you are basically partnering up with another company to represent you, there are certain rules you have to abide by:

  1. You have to commit to full cooperation with the trustee.
  2. You have to make sure that all payments are made on time and complete based on the MDI (Monthly Disposable Income) agreed upon between you and the trustee.
  3. You should not get into any more debt or apply for loans and other financial agreements during the subscription period you have with the trustee.
  4. Last, but not the least, should your financial situation change during the period you are enrolled in, you should notify the trustee immediately so they can do a reassessment of your Trust Deed Agreement.

If you are unable to comply with these, it will have a negative effect on your financial records. For one, your credit score is going to take a drastic plunge making it hard for you to secure any future loans for essential items in your life.

Some companies may also ask for a collateral to defray the expenses. So, if you have any properties you’d like to declare, make sure you do as it can help you get a more favorable rate through the Trust Deed you enter in.

A Trust Deed in Scotland is a convenient way to manage your debts and pay them off in small increments. Contrary to popular belief, it is not that easy to secure one. And if you happen to get one, your rates are not going to be as favorable as most would want you to believe. Still, it’s a great way to get your creditors off of your back and finally pay them in affordable chunks. Just make sure you don’t waste the opportunity and break any of the rules you have to abide with.