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Trust deeds - way to write off debt?
Hobbin_Rood
Posts: 98 Forumite
Has anyone heard of a trust deed? I read a post on another (Scottish, as I am) forum about it. Apparently if you have over 10k of debt it's worked out how much you can afford to pay back for 3 years, then the rest is written off (but in some circumstances you have to pay a lump sum - not all of the amount either though).
So even if you had 26k of debt but can only afford £100 a month after your monthly in/out has been looked at, then that's all you pay. Over 3 years this is only £3600. You can't get credit for 5 years but then you're ok again.
I quote:
"Get a Trust Deed. You only pay back a small amount of the debt per month and they deal with your creditors. You pay it over 3 years and wont be able to get credit for 5 years, but after that, your credit is restored. Best thing i ever done! I pay back £100 a month for a £26K debt."
from here:
http://www.slamevents.com/speak/showthread.html?t=95361
Anyone ever heard of this?
So even if you had 26k of debt but can only afford £100 a month after your monthly in/out has been looked at, then that's all you pay. Over 3 years this is only £3600. You can't get credit for 5 years but then you're ok again.
I quote:
"Get a Trust Deed. You only pay back a small amount of the debt per month and they deal with your creditors. You pay it over 3 years and wont be able to get credit for 5 years, but after that, your credit is restored. Best thing i ever done! I pay back £100 a month for a £26K debt."
from here:
http://www.slamevents.com/speak/showthread.html?t=95361
Anyone ever heard of this?
0
Comments
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Im sorry no one has replied to you
I dont know much about the scottish sytem- is a trust deed the equivalent to an IVA?:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
Yeah, I read that in another post. What's an IVA?0
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Found this website via google it may help:
http://www.debtadvicebureau.org.uk/trust-deeds/index.shtml0 -
Is a Trust Deed not the Scottish equivalent of a DMP?This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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Is a Trust Deed not the Scottish equivalent of a DMP?
Nope it isnt, sorry. It sounds like an IVA.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
It is an IVA, basically. But it could give you problems with obtaining credit for longer than the five years. If you're looking to get a mortgage in the future then think carefully cos it'll mean you will probably have to go with a higher-rate lender and that could cost you more than paying back the debt just now. The CAB will be able to advise.Unsecured DFD Aug '07 :jBought grown-up house Feb '08Mortgage Balance [strike] £165,000[/strike]£147,500 :rolleyes:0
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