As with all formal debt solutions in Scotland, the main downside for you will be how it affects your credit rating.
Having a Trust Deed will affect your credit rating for six years from the date the Trust Deed begins.
When borrowing money, credit reference agencies will assess the level of risk and base their decision on your financial history. This will include any defaults, whether you’re in a Trust Deed or used any other form of debt relief tool.
However, once your Trust Deed term has been complete and you have been discharged, you can then start to rebuild your credit rating and apply for a mortgage, credit cards etc.
While in a Trust Deed, you will make reduced monthly payments to your creditors, during which time you can get on with your life.
Before you commit to any Scottish debt solution, you would have a detailed call with an experienced debt advisor and the benefits and risks would be fully explained in the context of your own personal circumstances.
Every case is different to the next and with Trust Deed Scotland, you would receive tailored debt advice on what your debt repayment options may look like.