Scottish Protected Trust Deed Help !!!!!

Bagpiper_Sniper

Hi, Thanks for reading my post.

My wife and I stay in Scotland and we have unsecurred debts of approx £20k, and also a secured loan with welcome finance with £15k left on it as well as a mortgage with £72k left on it.

These consist of a personal loan that I pay to Triton credit services.
1 store card, 1 credit card and my wife is with fresh start and is on a debt management plan. To make ends meet I have taken out Payday loans with Month End Money and I cash cheques at the local cash centre.

We are finding the repayments getting too much for us and it feels like we are starting to sink.

We were contacted by a Scottish company Right/Wright Financial Services trying to get us to sign up to a Protected Trust Deed.

We didnt know much about the subject but have done some looking in to it and it seems like a good solution to be debt free within 3 years.

We are looking for some advice on Protected Trust Deeds.

1 What is the catch for a home owner ?
2 Is it really as simple as that?
3 Which companies are good, we were told Carrington Dean are good ?
4 Are there any hidden costs involved as the company said there was no setup fee for it ?
5 I have heard about people having problems at the end of the Trust Deed with creditors trying to get equity from the debtor through the property, please can you explain this ?
6 What are the risks to our home with a Trust Deed ?
7 Our fixed rate on the mortgage ends in December would having a Trust Deed affect going on to the standard variable rate we're with the Northern Rock ?
8 How good would our credit rating be afterwards ?


Any help you can offer would be great as we dont want our parents to know the extent of our problems. They dont have the cash or assets to sell or loan us to help us out.

Thanks again for your time and help

GeorgeUK

As i understand it, a trust deed is a form of insolvency and one step away from bankruptcy. It is the option you take before going bankrupt - one of the last options you should be looking at. You may be forced to sell your property if there is a shortfall at the end of it.
http://www.insolvencyhelpline.co.uk/debt_solutions/trust_deeds.php
This thread may hold some answers for you https://forums.moneysavingexpert.com/discussion/1271349

Have you looked at setting up a free debt management plan?
There are free debt charities that can assist with this - CCCS or Payplan

Have you looked at a Debt Arrangement Scheme (DAS)?
As i understand it, it freezes interest and charges and creditors are unable to take enforcement action against you. I guess it's like a protected DMP.
http://www.moneyscotland.gov.uk/das/MoneyScotland/Debt_Arrangement_Scheme__DAS_/How_does_DAS_work_

I would suggest contacting the nationaldebtline to discuss the options as well to ensure you are getting the most informed opinions. There is nothing wrong with a Trust Deed, but it is usually a last resort that people use this for. Some companies sell these and IVA's to anyone that will take them as it has been reported they get about 5k from each one they do.

nevil99

i finish my trust deed in 5 months , they do require you to re mortgage to take the equity from your property and the end of the deed to pay the balance , i myself went with grant thornton of edinburgh for me trust deed , its been a long haul but the clock is ticking and im near the end of it ,
im glad i did it , takes a lot of preasure away , but yes it does destroy your credit score , but if your in that much debt why would you want to be in more debt , it takes time to re build it .