Throughout Scotland, residents are struggling with their unaffordable debts and the Scottish Highlands are no exception. Whether they live in the bigger cities such as Inverness or towns such as Fort William, Ullapool and the areas of the Western Islands; people are struggling to cope with rising costs.
This figure consists of all the debts of Scottish residents, including safe debts such as home loans and unsecured consumer debts such as credit cards, installation loans and revolving lines of credit.
Scottish Highlands has one of the highest debt service burdens in the entire nation, which suggests that Scottish Highlands citizens are committing a higher portion of their disposable income to debts and interest payments than homeowners in other regions.
The typical debts burden in Scottish Highlands does not reach the high of nearly 10 percent in Scotland, but it is far greater than the average of 6 percent in West Lothian.
Because much of this home debts in Scottish Highlands consists of high-interest customer debts, there is the issue regarding whether homeowners will be able to pay all their expenses. If you reside in Scottish Highlands and are having trouble making your minimum month-to-month debt payments, there are options that can assist you make your debt more workable. Among these is the Trust Deed Scotland.
Scottish Trust Deed for Highland Residents
When citizens of Scottish Highlands want to lower the quantity of principal that they owe their creditors in addition to the interest charged on this principal, they might select the Trust Deed Scotland.
Scottish Highlands locals who go this path work with a licensed Insolvency Practioner to prepare a legal agreement with your creditors to consider a lower amount than what is owed in total in return for a guaranteed repayment.
Interest and charges frozen
At the same time, interest charges are frozen, meaning none of your creditors are legally allowed to contact you in the future and all legal action must be halted. Contact from debt collectors and bailiffs is also forbidden and any wage arrestments must be stopped.
If you live in the Scottish Highlands, a Trust Deed is a convenient way to settle debt and save money.
Payment is made to financial institutions by means of the insolvency practitioner in either regular monthly installations or one lump-sum payment.
As long as you keep up with your monthly repayments for the duration of the agreed term, any remaining debt left over at the end of the term will be legally written off and you will then be free from debt.
Applying For a Trust Deed in the Highlands
Knowing whether you should select the Trust Deed Scotland depends on your scenario. It is a beneficial solution for those with large debt, but you need to owe over £5,000 to qualify for a Trust Deed Scotland.
Will I Iose my home?
Your property can be protected in a Trust Deed. The Debt Arrangement Scheme is an alternative formal Scottish debt solution that can allow homeowners to repay their debt, whilst protected their home.
Scottish Highlands locals typically pick these debt service because of ther protection advantages.
but they also like it because if the minority of creditors don’t agree to the terms but the majority do, then the minority are out voted and the agreement is approved.
On the other hand, there are considerable disadvantages of a Trust Deed that Scottish Highlands residents need to be aware of.
The Trust Deed in Scotland is a form of personal insolvency, and it affects your credit negatively for around 6 years.
Whilst this a main disadvantage of the solution for anyone considering whether a Trust Deed is right for them, likely, many of those people have already defaulted on their debts. Defaulting on your debts itself can have a detrimental impact on the credit rating of an individual.
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