trust deeds

My sister in law has signed up to some kind of Bond which I think sounds like a trust deed. It sounds too good to be true, they pay this company £200 per month for three years and the rest of their debt is written off!!
Whats the catch? we live in Scotland.
luluspice

Comments

  • Debt_Free_Chick
    Debt_Free_Chick Posts: 13,276
    Combo Breaker First Post
    Forumite
    Probably no catch. The law is very different in Scotland. All is explained here

    http://www.nationaldebtline.co.uk/scotland_factsheets/factsheet_21.php3
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • mattp_3
    mattp_3 Posts: 270 Forumite
    Yes indeed - people who live in Scotland actually have a much simpler (and easier) alternative to an IVA called Trust Deeds, you can get more help from:

    https://www.debthelpscotland.co.uk

    Regards
    Matt
  • tiggerbabe
    tiggerbabe Posts: 25 Forumite
    I live in Scotland and I have a Trust Deed.

    I signed it in January and I pay £235 per month for the next 3 yrs. My Trust Deed has been "protected" now for a couple of weeks which means that the creditors have agreed to the payments I am going to make and also agree that at the end of 3 yrs (from the date of signing the Trust Deed, not the date of the first payment to the IP) the remaining debt is written off.

    At the end of 3 yrs I will be paying off about £9k - whereas I owed nearly £24k before I took on the Trust Deed!

    I even got my Student Loan that I took out 8 years ago included in it - so I don't need to worry about that when I am finished either.

    All in all it has been a massive weight off my mind - but I wish I had done it a long time ago rather than trying the Consolidation loan route first......
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