There is no upper age limit for applying for a Trust Deed or the Debt Arrangement Scheme.
However, there are some important factors that need to be considered as part of the overall qualifying criteria.
More older people are finding themselves with unexpected debts than ever before. As people age, the chances of age-related redundancy, chronic illness and death of a spouse increase, which then can impact their ability to pay off their debts.
Furthermore, pensioners are a group that are more likely to keep problem debts to themselves and suffer on alone. Having trouble with debt in retirement is becoming more common, with more retirees struggling to deal with credit cards and other unsecured debts.
Research by Key Equity Release found that in January 2020 almost 32% of their clients in Scotland had released equity to pay off credit card debts, personal loan debts and bank overdrafts.
While there is no formal age limit for applying for a Trust Deed, a person’s ability to repay the debt needs to be considered. A regular contribution shall be required for a typical period of 48 months therefore, in order to qualify for a Trust Deed, an income such as a private pension may be used to pay monthly contributions.
However, in order to be considered for the Debt Arrangement Scheme, a state pension may be included when calculating what your affordability may look like.
When it comes to finding debt help in Scotland, you need to review your circumstances and then make a decision based on what works best for you, and based on a reasonable understanding of the options open to you, and how those translate into meaningful outcomes that will help you get your debt back down to an affordable level.
Alternative debt solutions for Pensioners?
For those with a state pension as their only income, then a Minimal Asset Process may be more beneficial – or as mentioned above, the Debt Arrangement Scheme again may be a more viable alternative solution.
The truth is that for those looking to understand the age limit for applying for a Trust Deed, the advice remains the same regardless of your age, your debt level, or how much you think you can afford to repay. In all cases, you should seek expert debt help from a qualified money advisor.
As Scotland’s leading Trust Deed company with 5,000 reviews on Trustpilot and by having helped over 25,000 people in Scotland – Trust Deed Scotland® are in a position to give non-judgemental, friendly and confidential advice.
Our experienced advisors regularly talk to people from all age groups, and all walks of life on a daily basis.
Ways of increasing your income when retired
You may wish to consider other ways of managing your debts without needing formal debt help in Scotland.
Carry on working – if you’re fit and healthy then a part-time job may keep you busy and allow for more money to come in.
Downsizing – If you’re in living in a house that has more bedrooms than you require, then this may to create a lump sum and then has an additional benefit of reducing maintenance and heating bills.
Check your benefits entitlements – Investigate the benefits that you are receiving and find out what you’re entitled to. In order to receive certain benefits, then you need to claim them. You may therefore be entitled to extra money without realising it.
Check your pensions entitlements – You can consider a pension consolidation service using Zippen. Auto enrolment workplace schemes have been widely publicised and promoted. What is seldom explained is what happens to that pension when we move jobs throughout our careers. Cost and the fear of the unknown may stop many of us from asking the question or seeking advice but with Zippen estimating that throughout our working lives, UK residents may have up to 11 different jobs, which potentially means 11 different pension pots containing income that may had previously been forgotten about.
What’s the minimum age for a Trust Deed?
The minimum age to apply for a Trust Deed is 18.
It is typically unlikely that a person would find themselves with so much unaffordable debt in order to qualify for a Trust Deed. Credit agreements legally require an individual to be eighteen plus.
The Debt Arrangement Scheme similarly is open to 18-year-olds and above, just like with Trust Deeds, it would be unusual for an individual who is so young, to have built up a significant debt level to qualify.
However, with the impact of Coronavirus hitting the 18-24 age group the most across retail, leisure, travel and hospitality sectors, coupled together with a growing irresponsible buy now, pay later lender culture created by the likes of Klarna, there are a growing number of individuals within this age group that do require debt help than there would be under usual conditions.
Likewise, with anyone who needs debt advice in Scotland – people find themselves with unaffordable debts for a variety of reasons, and our advisors are never there to judge you. Only to help you by providing debt advice and solutions, tailored to your individual needs.
Applying for Debt Help online
Regardless of your age – if you are experiencing financial difficulties you should look to get help as soon as you possibly can.
Use our Trust Deed Wizard® and get start started today.