As the name suggests; a Trust Deed is a formal valid agreement.

Advantages – Trust Deed benefits the debtors as under:

1. All queries related to your loan will be dealt with by your trustee. He or she would do all creditor correspondence and you need not take any tension in this regard.
2. Your creditors will not be allowed to take any action against you after the Trust Deed has been protected.
3. No charges or interest on the debts would be applicable after signing the trust deed.
4. You are required to make a single monthly payment during the deed period.
5. The remaining debt after expiry of forty eight months in general stands written off.
6.   Only a single payment each month to the trustee has to be made by the debtors. It is he or she who administers and distributes the payments.
7. Creditors will not be permitted to contact you after acceptance of the deed, e.g. Trust Deed Wizard.
8. The creditors can take no legal action once the trust deed becomes protected.
9.    The existing debt could be cleared within forty eight months.
10. Trust Deed is considered as the best alternative to bankruptcy.
11. Balance of your owing stands written off after completion of the Trust Deed.
12. You would be at liberty to continue your existing business in usual manners.

Disadvantages – Following points need to be borne in mind by the debtors who get the Trust Deed initiated:

1. Those not adhering to the terms and condition of their Trust Deed may have to face bankruptcy.
2. The credit file of the debtors may be affected in adverse manners after acceptance of the Trust Deed.
3. No further credits would be allowed while the agreement is in place.
4. Remortgaging becomes necessary for release of equity in the debtor’s property. In case they fail to obtain remortgage then the deed, e.g. Trust Deed Wizard may be extended. It results in making the debtors to make payments for up to twelve months.
5. Large sized or valuable assets may have to be sold for releasing their value.

Debt Advice Websites – The debtors approaching the debt advice websites must be careful about the online tools offered by them. The responsible firms usually highlight consumer warnings apart from the calculators and wizards to apprise about their own limitations. However, the irresponsible firms do not follow this path and just tell the debtors that they can avail of the protected trust deed available with them. This is done with the aim to overpromise and generate enquiries that seem to breach the trust of their visitors.

Warning – Online calculator or wizard can’t work out your disposable income. Your assets can’t just be valued with these online tools. They do not possess any genuine idea whether the debtors qualify for a trust deed that would be accepted by the creditors. As such the debtors must confirm if the trust deed suits their needs. It must be ascertained if there are any other alternatives and their suitability must also be checked. Acceptance of trust deeds by the creditors is also a must. For more information click here https://www.trustdeedscotland.net/trust-deed-wizard.php.