Debt can make you feel very alone, but chances are if you pick anyone at random passing you by on the street they’ll have some debt. However if you’re in financial trouble and a Protected Trust Deed is your only option beside sequestration, that feeling of loneliness can be magnified. It’s much harder to find someone who either has or is considering a Protected Trust Deed, and it can even make you feel you’re the odd one out.
But you don’t have to feel like that. Because people who take out Protected Trust Deed are normal, ordinary individuals with lives pretty much like yours. They could be your next-door neighbour, your boss or even your best friend.
In 2009 the Government published the results of a review of 1,262 Protected Trust Deeds registered between 1 April 2008 and 30 September 2008, and it revealed everything from gender to monthly income and assets.
How much did the average debtor owe?
Almost 55% of people with Protected Trust Deeds were female and 45% were male, with an average debt is £32,652. The highest total debt owed for a single Protected Trust Deed was £456,361 while the lowest was £3,542. Just over 60% of the debts were owed to the top ten creditors in table below – nearly £25 million – and these are all large financial organisation.
|Lender||Percentage of total|
Protected Trust Deeds Debt
The other 60% of the debts were made up of personal debts with high street stores and much smaller lenders. The lowest unsecured individual debt owed to a creditor was £9.00 and the highest was £32,488.
In fact, around £250 million was included in Protected Trust Deeds during the year of the review, while a staggering £205 million pounds is estimated to have been written off.
How much income did they have at the time?
There was a lot of variation in how much income each person received each month – from £200 to £4,600. However half of Protected Trust Deeds were set up by people with a monthly income of between £800 and £1,400 a month (roughly a salary of £16,000 to £23,000)
In fact around a quarter of the people with Protected Trust Deeds in the review had incomes of less than £1,000 per month while at the other end of the spectrum 2.5% had more than £3,000 per month.
What assets did they have?
Only 40% of those people with Protected Trust Deeds had assets that could be sold to raise money to pay their creditors, and they were worth between £50 to £150,000. However, the majority of assets were valued by Insolvency Practitioners at less than £10,000.
So what does all this mean for you?
That you are not alone – over 7,500 people take out Protected Trust Deeds every year.
That people from all walks of life take out Protected Trust Deeds – income is no indicator of wealth; someone earning a lot of money every month can still be in financial trouble.
And most importantly that Protected Trust Deeds are one of the most effective methods of debt relief you can use to help to both reduce the amount of debt you owe and relieve you from the stress and hassle of dealing with creditors.
And you’re now one of very few people who actually know that!
Trust Deed Example
Example Unsecured Debts
|2||Credit card 1||£6,812|
Your Monthly Repayments Would Be
a Scottish Trust Deed £748
(total contractual repayments)
a Scottish Trust Deed £295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances. For more information on our fees click here