Thursday 19 September 2019

The implications of trust deed scotland

For one to clearly understand what the features and involvement of the trust deed Scotland are, it would be good that they are clearly enumerated and explained if necessary.

In this article, you would learn a little bit more of the things that are expected of the creditor and the debtor that are in this scheme.

The first feature about the scottish trust deed is that you would be completely debt free after a period of about four years. This may sound too good to be true but it is. The amount that is owed is divided into small portions that can be settled at a given interval. The duration to complete the total sum if paid in the divided bits at the chosen interval may be more than four years. Nonetheless, after the fourth year, according to the protected trust deed, the rest of the debt is canceled. This is not to the disadvantage of the creditor because it is an agreement that he or she is expected to consciously concurring to.

Another interesting feature that is enjoyed when one opts for the scottish iva is that the charges and any form of calculated interest on the debt there is would be frozen. This means that such would no longer count or increase even as time passes by. One of the things that makes debt sometimes very difficult to pay off is that as time goes by, the charges or interest on the debt also increases. This more often than not really does not help the debtor who may be struggling to pay off the debt that is in question. As much as time matters in the clearing of a debt, a concurrent increase in the debt also with time would only wind up prolonging the time that the debtor would have used to complete the payment of the debt. Though the issue of interest cannot be ruled out from debts, trust deed helps in leveling up the ground in that aspect.

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