Trust Deed - How To Avoid Dishonest Organisations

A Trust Deed is one of the most widely used debt solutions for people in Scotland, yet it is one of the least understood solutions. The Trust Deed debt solution has encouraged many debt companies to spring up and offer these solutions. One of the main benefits of the Trust Deed is that you only repay what you can afford, typically over a three year period, with the rest of the money you owe being cleared.

When a companies identifies someone as being suitable for a trust deed they will collect all the relevant documents from the client. Once all the documentation is collated it is sent to an insolvency practitioner who will pay the company for work carried out.

When a trust deed becomes protected the client will only pay back a proportion of the amount owed and so they are usually unaware of any fees or charges.

Tip: When speaking to an organisation who is going to refer you to an insolvency practitioner you can ask what fee they will get and how this will affect yourself. For the most part fees and charges for the trust deed will not affect you but it is within your rights to know anything that can affect you.

Many people have found themselves the victims of dishonest companies who have manufactured their circumstance so that they would meet trust deed criteria. In some instances the companies would charge the client a setup fee, or even carry out text marketing campaigns advertising that people could "write off 90% of their debt".

Tip: While it is not impossible for someone to pay back just 10% of their debt, it is unlikely in most cases, it also give a false impression to people who are vulnerable about what help is available.

Many of these deceitful trust deed companies have been closed down due to their business practices but new ones are alway opening up. It is also worth doing your homework before speaking to any organisation about your financial circumstances.

Tip: When looking for a debt solution like a trust deed, be careful to not speak with any organisation who have contacted you by text as this will generally be a marketing campaign. One option to stay safe when looking for debt advice is to speak with a debt charity. Also check for a charity registration number and search google to confirm this.

"Robbing Peter to Pay Paul"

There are millions of people across the UK who have debt, however that debt is manageable and whilst we might begrudge paying the interest each month we know it's possible to repay our debt eventually.

Some people become entrenched in debt, struggling to find the solutions to resolve long term financial problems, often resulting from another issues such as a marital breakdown or loss of job. When the difficult financial times come, it's easy to understand why people would want to resolve the problems themselves - using their own initiative to move credit card balances to get the best deal, avoid paying high interest and charges and ultimately pay off their debt.

The difficulty for many people arises when there is no longer any credit card available, no loan or further credit on offer. When financial times get tough, it's important to accept that in some instances qualified debt experts could be required - not another loan!

When debt problems are coming through the letter box or via the telephone;

- Face it head on
- Stop looking for a loan
- Ask for debt advice from a qualified debt advisor at a charity, such as Debt Support Trust or Citizens Advice Bureau