What are the Advantages of a Trust Deed?
For many people a Trust Deed offers a more affordable monthly payment. There are, however, some disadvantages to entering into a Trust Deed - and it's worth considering all your options if you are under financial pressure. The advantages include:
- Your creditors are bound by a legally binding contract.
- Your debt is managed via a 36 month repayment schedule.
- A single monthly payment tailored to your unique needs.
- Charges and interest rates are frozen.
- Once your Trust Deed is signed, you are protected from creditor harassment.
- Once you have made all of your payments, any unsecured debt that was part of the deed is eliminated.
- A Trust Deed can be extended and monthly payments reduced if your financial circumstances change.
- Your mortgage and home ownership is unaffected.
What are the Disadvantages of a Trust Deed?
There are some disadvantages of opting for a Trust Deed:
- If you miss payments on your Trust Deed it can be terminated. In such a case, the remaining debt becomes your responsibility again.
- Any credit you apply for in excess of £250 requires you to notify the creditor of your Trust Deed.