If you have outstanding unsecured debt, a trust deed helps you wipe off your debt on easy and affordable terms. It is a formal debt management solution that helps to pay off your unsecured debts with affordable monthly payments. A trust deed is a debt settlement plan for four years, and your remaining debt is usually written off on the completion of the repayment term.
The unsecured debts that can be included in a trust deed are credit cards, payday or bank loans, utility bills, overdrafts, council tax arrears, and other unsecured loans. Under a trust deed, your trustee will pay your creditors an agreed-upon monthly payment on your behalf in order to settle your debts. The top five reasons to get a trust deed are listed below.
Legal Protection from Creditors:
Once you take on a Trust Deed, you will no longer receive any harassing calls from your creditors. Your creditors are not allowed to take any action against you. Additionally, a Trust Deed legally protects you from the creditors trying to get wage arrestment against you. Your assets are also protected by your trustee who acts on your behalf. Check this page about Trust Deed to learn more about it.
Freeze Interest and Charges:
Many people are unable to pay off their debt due to the added interest and charges. All your interest and charges on your debt will be frozen under a Trust Deed and you don’t have to struggle with paying out high interest along with your actual debt. This means your debt will not increase any further and you will only have to make payments to clear out your actual debt.
Fixed Payment Term:
A Trust Deed is typically a four-year repayment term, meaning that you will be free from debt in just a few years. A trust deed is particularly useful if you are struggling with multiple unsecured debts. You will only have to make a single, manageable payment each month that you can afford over the payment term. That means you will regain control over your finances and you would not have to borrow more to make ends meet.
Write Off a Percentage of Your Debt:
If you have successfully made your payments during the repayment term and your Trust Deed has ended, your remaining debt will be written off. That means you will be totally free of debt by the end of your Trust Deed. With a trust deed, you exactly know that you will be debt-free after four years and you can make your financial goals accordingly.
Keep Your Assets Protected:
Having a Trust Deed saves you from entering bankruptcy or sequestration under which you may have to sell your assets to pay off your debt. You will not have to sell your valuables like belongings, home, or car when you have a Trust Deed. You will never be asked to sell your assets to make your debt payments with a Trust Deed, meaning that your assets will be protected from liquidation.