TRUST DEEDS PROS AND CONS

• What is a Trust Deed?
• Trust Deed Pros and Cons
• Trust Deed FAQs

Trust Deeds Pros and Cons

Pros:

• Once you have completed the term of the Trust Deed, any remaining debts are written off
• Freezes interest and charges on your debts for the duration of the term (usually three years)
• Trust Deeds are legally binding agreements which prevent your creditors contacting you
• You know the exact date when you will be free from debt
• Gets you one lower affordable monthly payment
• Avoid the stigma and financial consequences of Bankruptcy

Cons:

• Requires commitment and will power not to get yourself further into debt - regular payments must be made on time for the full term (Usually 3 years)
• You cannot take out further credit until your Trust Deed is complete
• If you don’t stick to the terms of the Trust Deed you may be made Bankrupt
• If you earn more on a regular basis you may be asked to pay extra into the Trust Deed
• You may be asked to remortgage to release equity in your property
• If you have an expensive vehicle, you may be asked to down grade to a cheaper model and pay any monies left over into your Trust Deed
• Your Trust Deed will stay on your credit report for 3 years after the term has ended. This may affect your ability to obtain further credit
• You will repay more of your debt by doing a Trust Deed than if you were to go bankrupt

The UK Debt Advisor can help you setup a Trust Deed.
Call us free on 0800 043 2027 or use the call back phone below.

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