This isn't so much a loan but this is the nearest place I could think to put it.
I have a Trust Deed and I only found out about them by accident by speaking to a colleague at work. Tust Deeds are only applicable in Scotland but there is an equivalent in in England.
A Trust Deed is set up by contacting an Insolvency Practitioner. They may do a home visit or send you lots of forms to fill out. YOu have to write down all the creditors that you wish to pay off and what outgoings you have a month. They work out how much you will need to pay each month to them to distribute between your creditors. There are 2 types of Trust Deed- Protected and Unprotected.
They then write to all your creditors giving a plan of repayment and give them time to object. The details of your Trust Deed are posted in the Edinburgh Gazette and your creditors have 5 weeks to dispute the arrangement. If it is uncontested you then have your Trust Deed set up.
It is paramount that you do not miss a payment but the amount is usually so much lower than what you were paying before this shouldn't be a problem. There are conditions such as you have to advise of any changes in income, any extra money you get i.e if you sell a car etc. They usually send a form to complete every six months to update what your income/outgoings are and whether this reflects any changes needed to what you are paying.
You can only have a Trust Deed ONCE and it lasts for 3 years. You may find that you still have a low credit score for a total of 6 years (the 3 year Trust Deed included in that time) but in my opinion it is worth it.
As an example, we had a combined debt amount of £15k. Our income per year is about £20k. We pay a total of £240 per month to the Insolvency Practitioner to be paid out to our creditors and pay his wages.
Remember everyone's circumstances are different, but I can truly say that I am a lot happer and less stressed out than I was before we had the Trust Deed.
Hope this helps !! Have added a link too for more information:
Trust Deeds (in Scotland only). The formal arrangement alternative to bankruptcy
I have a Trust Deed and I only found out about them by accident by speaking to a colleague at work. Tust Deeds are only applicable in Scotland but there is an equivalent in in England.
A Trust Deed is set up by contacting an Insolvency Practitioner. They may do a home visit or send you lots of forms to fill out. YOu have to write down all the creditors that you wish to pay off and what outgoings you have a month. They work out how much you will need to pay each month to them to distribute between your creditors. There are 2 types of Trust Deed- Protected and Unprotected.
They then write to all your creditors giving a plan of repayment and give them time to object. The details of your Trust Deed are posted in the Edinburgh Gazette and your creditors have 5 weeks to dispute the arrangement. If it is uncontested you then have your Trust Deed set up.
It is paramount that you do not miss a payment but the amount is usually so much lower than what you were paying before this shouldn't be a problem. There are conditions such as you have to advise of any changes in income, any extra money you get i.e if you sell a car etc. They usually send a form to complete every six months to update what your income/outgoings are and whether this reflects any changes needed to what you are paying.
You can only have a Trust Deed ONCE and it lasts for 3 years. You may find that you still have a low credit score for a total of 6 years (the 3 year Trust Deed included in that time) but in my opinion it is worth it.
As an example, we had a combined debt amount of £15k. Our income per year is about £20k. We pay a total of £240 per month to the Insolvency Practitioner to be paid out to our creditors and pay his wages.
Remember everyone's circumstances are different, but I can truly say that I am a lot happer and less stressed out than I was before we had the Trust Deed.
Hope this helps !! Have added a link too for more information:
Trust Deeds (in Scotland only). The formal arrangement alternative to bankruptcy
