Archive for January, 2010

Protected Trust Deeds and how they can help you manage your debt

Wednesday, January 27th, 2010

Have you heard of protected trust deeds or a Scottish trust deed? Well if you’re based in Scotland and have run up debts that are proving tough to manage you may well be interested in taking some trust deed advice or at least finding out a little more about how protected trust deeds can help you.

Times have been tough over the last couple of years for many people. The length and the depth of the recession are cutting deep. According to the BBC an estimated 125,000 people were made bankrupt in 2009. Accountancy giant KPMG actually believe that the figure may top 150,000. The Council of Mortgage Lenders (CML) only compounded the doom and gloom by estimating house repossessions will top 60,000.

With only faint signs (a surprising fall in unemployment this month for example) offering any hopes that the UK’s fragile economy will turn the corner in the near future, many experts are predicting another tough year ahead. There is little doubt that over the next 12 months many people will face increased financial burdens and will end up in severe financial difficulty. Failure to adequately manage debt means that unfortunately some people will end up going bankrupt.

Thought probably the best-known way through which people escape severe debt, bankruptcy is a serious step to take and deserves very careful consideration. Yes it ends after one year, but you may well end up forfeiting all your assets including your house to pay something off your creditors.

There are alternative ways of managing debt that anyone struggling with money problems should be made aware of especially if you live in Scotland.

Available only in Scotland Scottish trust deeds or protected trust deeds (PTD) can prove a straightforward and cost effective way of managing your debt problem. Similar to IVAs (Individual Voluntary Agreements) protected trust deeds enable you to repay your debt over an agreed length of time at a rate you are able to afford. Once the agreed repayment period has expired any remaining money you owe is written off.

Interested? Talk to a reputable debt guidance agency for the latest trust deed advice.

Tags: , , ,
Posted in Debt advice | No Comments »

Individual Voluntary Arrangements (IVAs) – Debt repayment made simple

Monday, January 25th, 2010

Debt in the UK is at record levels and many debt advice organisations and agencies are dealing with unprecedented numbers of requests for bankruptcy and Individual Voluntary Arrangement (IVA) advice – even the Government owe nearly 800 billion – (it may surprise you to know that as a proportion of overall economic output debt at 68.7% of GDP compares favourably with the US – 84.8% -, Italy – 115.8% and Japan – 218.6%). International global debt comparisons aside, the point still remains; more people owe more money than ever before.

Often through no fault of their own many now find themselves in positions where their debt has rapidly gone from manageable to out of control – debt that needs addressing quickly. Increased unemployment, shorter hours, less overtime, pay freezes and pay cuts has all affected incomes. Expenditure on the other hand seems to have rocketed. Fuel prices, council tax, food costs, utility bills, you name it, everything seems to have gone up drastically over the last couple of years.

If you find yourself in the position of owing more than you can cope with, what can you do? What are the options when it comes to managing your debt?

Consider the benefits of an IVA Advice regarding IVAs is consistent – Individual Voluntary Arrangements can offer a relatively simple and effective alternative to bankruptcy. Particularly appropriate for unsecured debts such as personal loans, bank overdrafts, store cards and credit cards once in place an IVA also offers ongoing protection from additional creditor claims. You agree to pay an affordable amount to your creditors over a set time period (usually 60 months) and the end of the payment period any outstanding debt is written off – up to 75%.

If you live in Scotland then you have the option to pursue a system that’s similar to the Individual Voluntary Arrangement – the Protected Trust Deed (PTD). Instead of the five-year period usually applied to IVAs The Protected Trust Deed lasts only for 3 years. Again, in many cases Protected Trust Deeds might be regarded as a less onerous alternative to bankruptcy which in Scotland which is referred to as Sequestration.

For any additional information on IVA or indeed anything to do with debt management make sure you contact a reputable debt advice agency.

Tags: , , , , ,
Posted in Debt advice | No Comments »