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Trust Deeds Vs Debt Plans
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Protected Trust Deeds Vs Debt Management Plans
Protected Trust Deeds – PTDs Pros and Cons
Protected Trust Deeds – PTDs Pros and Cons
A Protected Trust Deed is available to all individuals, Sole Traders and Partners (domicile in Scotland) who are insolvent and are experiencing creditor pressure. It can be used by those who own their own property and wish to avoid the possibility of losing it in the event they were made bankrupt. You do not have to own a house to sign a Protected Trust Deed.
For a Protected Trust Deed to succeed you need to be control of your spending. Whilst in a Protected Trust Deed you will be unable to get credit therefore you must live within your means.
For a Protected Trust Deed to succeed you need to be control of your spending. Whilst in a Protected Trust Deed you will be unable to get credit therefore you must live within your means.
Protected Trust Deeds – Pros
Debt free in 36 months.
Interest and charges are frozen.
Monthly payment is based on what you can afford.
No direct fees to be paid by you but be warned some companies may charge you an upfront fee.
No more creditor contact throughout the term of the arrangement.
Avoid all of the unfavorable stigma and restrictions of bankruptcy.
Legal action and collection action will stop.
Compels you to address your financial management issues.
Removal of the temptation to get further into debt.
Protected Trust Deeds - Cons
In order for the Protected Trust Deed to be agreed, you require a third in value of the unsecured creditors to approve the arrangement.
Your home and assets may still be at risk if the creditors decide not to exclude them.
You may find getting credit in the future more expensive. Creditors will assess your risk level based on your financial history.
You will not be able to use your store or credit cards. These will be cut up.
You will not be able to use your store or credit cards. These will be cut up.
You will normally not be allowed to borrow any more money until you have successfully completed your arrangement. It may however be possible to change an existing mortgage or take a new one while you are in a Protected Trust Deed.
If the Protected Trust Deed fails as a consequence of you not meeting your obligations under it, it likely that you will be sequestrated (bankrupt).
Debt Management Pros and Cons
A debt management plan could provide an efficient way for you to deal with your finances and repay your debts at a rate you can afford. Here are 5 of the main pros and cons of debt management;
Debt Management Pros
Debt management could see your interest and charges being frozen by your creditors
Reduced monthly payments on debt management plans
Debt management can provide relief from unmanageable debt levels and stress
Debt Management demonstrates your willingness to tackle your debts
Debt management wont hurt your credit rating as much as other debt solutions like IVAs and bankruptcy
Debt Management Cons
Debt management is not a legally binding agreement unlike an IVA
Your creditors are under no obligation to agree to freeze interest and charges
It will take you longer to pay your debts whilst on debt management
Your credit rating will be affected
Your creditors are free to raise legal proceedings against you at any time to recoup the money you owe them
A debt management plan can provide you with some breathing space if your debt repayments have become overwhelming and you need time to sort out your financial situation.
The amount you pay to your debt management company every month will be calculated by looking at your overall income and expenditure. Your payments will be distributed amongst your creditors which mean that the pressure of phone calls chasing you for money will ease off and let you concentrate on getting your finances back on track.
In order to qualify for a debt management plan your debt should be at least £1,500. This should be between more than two creditors. Its essential that youve got a regular income from which to meet your monthly repayments to your debt management company for them to then share amongst your creditors.
For more information on Protected Trust Deeds - PTDs or information about our other debt solutions, speak to one of our experienced debt advisors on our debt free helpline: 0161 713 1883
Debt free in 36 months.
Interest and charges are frozen.
Monthly payment is based on what you can afford.
No direct fees to be paid by you but be warned some companies may charge you an upfront fee.
No more creditor contact throughout the term of the arrangement.
Avoid all of the unfavorable stigma and restrictions of bankruptcy.
Legal action and collection action will stop.
Compels you to address your financial management issues.
Removal of the temptation to get further into debt.
Protected Trust Deeds - Cons
In order for the Protected Trust Deed to be agreed, you require a third in value of the unsecured creditors to approve the arrangement.
Your home and assets may still be at risk if the creditors decide not to exclude them.
You may find getting credit in the future more expensive. Creditors will assess your risk level based on your financial history.
You will not be able to use your store or credit cards. These will be cut up.
You will not be able to use your store or credit cards. These will be cut up.
You will normally not be allowed to borrow any more money until you have successfully completed your arrangement. It may however be possible to change an existing mortgage or take a new one while you are in a Protected Trust Deed.
If the Protected Trust Deed fails as a consequence of you not meeting your obligations under it, it likely that you will be sequestrated (bankrupt).
Debt Management Pros and Cons
A debt management plan could provide an efficient way for you to deal with your finances and repay your debts at a rate you can afford. Here are 5 of the main pros and cons of debt management;
Debt Management Pros
Debt management could see your interest and charges being frozen by your creditors
Reduced monthly payments on debt management plans
Debt management can provide relief from unmanageable debt levels and stress
Debt Management demonstrates your willingness to tackle your debts
Debt management wont hurt your credit rating as much as other debt solutions like IVAs and bankruptcy
Debt Management Cons
Debt management is not a legally binding agreement unlike an IVA
Your creditors are under no obligation to agree to freeze interest and charges
It will take you longer to pay your debts whilst on debt management
Your credit rating will be affected
Your creditors are free to raise legal proceedings against you at any time to recoup the money you owe them
A debt management plan can provide you with some breathing space if your debt repayments have become overwhelming and you need time to sort out your financial situation.
The amount you pay to your debt management company every month will be calculated by looking at your overall income and expenditure. Your payments will be distributed amongst your creditors which mean that the pressure of phone calls chasing you for money will ease off and let you concentrate on getting your finances back on track.
In order to qualify for a debt management plan your debt should be at least £1,500. This should be between more than two creditors. Its essential that youve got a regular income from which to meet your monthly repayments to your debt management company for them to then share amongst your creditors.
For more information on Protected Trust Deeds - PTDs or information about our other debt solutions, speak to one of our experienced debt advisors on our debt free helpline: 0161 713 1883
