General Information Concerning The Protected Deed Trust

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General Information Concerning the Protected Deed Trust for Scotland

In Scotland, a repayment plan, allowing people with unmanageable debt to repay an affordable and realistic monthly payment to clear unsecured debt is known as a Trust Deed.

How can a Trust Deed Help?

. Debtors must pay a monthly sum that is realistic and affordable
. The monthly repayment is based on income and expenditure
. This type of debt repayment plan is generally spread over a period of four years
. At the end of the four year term, any outstanding unsecured debt is legally written off

Debtors will be asked to make one affordable monthly payment, based on their income and expenditure. All Trust Deed costs are paid from this sum of money and the remainder is
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Enter into a DAS (debt arrangement scheme) and all charges and interest is frozen
. Overall debt levels reduce faster when interest is frozen
. All of your unsecured debts are added together and your income and expenditure are taken into account to form an affordable monthly payment
. This could mean your monthly payments are substantially reduced

Is a Debt Arrangement Scheme Right for Me?

DAS schemes are particularly helpful for people who cannot meet their contractual monthly payments. The scheme allows you to create an affordable monthly contribution towards your outstanding debts. However, entering into such an arrangement will have an adverse effect on your credit rating.

The Debt Management Plan

Debt Management Plans are informal agreements between creditors and debtors. The plan allows you, the debtor, to make affordable monthly payments towards the debt.

How can a Debt Management Plan Help?

. In general, creditors agree to freeze interest for those entering such a plan; therefore your outstanding debts remain the same
. Affordable monthly debt repayments free money for general living expenses, making daily life more bearable

Is a Debt Management Plan Right for Me?

High unsecured debt repayments are financially crippling. If you find it impossible to meet high monthly loan payments, but can make smaller repayments, this may be the ideal plan for you. We cannot guarantee your creditors will accept the terms of the plan and it is worth noting the
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