It can be difficult to know who to turn to for debt help when there are numerous debt advice companies advertising on TV offering a Trust Deed Scotland or IVA in England, Wales or Northern Ireland.
It’s important to know the facts about a Trust Deed or IVA before your enter one of these solutions. There are roughly 45,000 entering a Trust Deed in Scotland or IVA England, Wales or Northern Ireland each year to resolve debt problems. They are suitable for some people who have severe debt problems but they are not always the best solution.
IVA England, Wales and Northern Ireland
An IVA is one solution for people with debt problems and living in England, Wales or Northern Ireland. If you have unsecured debt of £12,500 or more and can afford a monthly contribution towards your debt then you may be applicable. However, if you have any equity within a property this would have to be considered too. Also, if your monthly contribution (for 5 years) would total more than your unsecured debt (plus any equity from assets) then this would not be the best solution for you.
IVA TV Advert
If you have watched an IVA TV Advert you may believe you are suitable for an IVA. If you are then our charity debt advisors will be able to help you identify all of the debt solutions which you are applicable for. A friendly advisor will also explain the benefits and negatives of the IVA and all other applicable solutions to debt.
Trust Deed Scotland
A Protected Trust Deed is the Scottish equivalent to the IVA in England, Wales or Northern Ireland. The Protected Trust Deed can enable you to repay an affordable amount towards your debt each month and in the end only repay a percentage of your debt. There are negatives to a Protected Trust Deed which you should be aware of too.
Trust Deed Scotland Advert
A Protected Trust Deed Scotland TV advert will explain most of the benefits of a Protected Trust Deed and it may sound appealing to enter this solution. A debt advisor at Debt Support Trust will be happy to explain the benefits and negatives of the Protected Trust Deed Scotland for you. We will also explain all applicable debt advice solutions which you may wish to consider.
What should you look for?
If you seek debt help from a company, or a charity, you should ask some questions about the organisation before following their advice. Some questions worth asking are;
– Will the company charge you for advice? If yes, how much and are you happy to pay for this? You can get free debt advice from a number of different providers.
– Does the company have a consumer credit licence to provide debt advice? You can check the public register here
– Is the company registered with Companies House?
– All organisations require money to survive, whether by donations or money directly from your pocket, so ask how the organisation funds its service.
Phrases to beware of
If you have watched a debt TV advert you probably heard phrases which sound extremely appealing, however most of the phrases which sound too good to be true come with caveats which
– “Write off 75% of your debt”. In England, Wales and Northern Ireland the IVA can help you only repay 25% of your debt (after fees), however often people end up paying more than this. An IVA is about paying what’s affordable.
– “Clear 90% of your debt”. A Scottish Trust Deed has the potential to allow you to repay 10% of your debt over a 3 year period, however this doesn’t include fees which you have to pay. Also, similar to the IVA, you will repay what you can reasonably afford.
– “Protect your house”. In an IVA and Trust Deed you need to release any equity from your property. Most TV adverts say an IVA and Trust Deed will protect your house, however you will have to release any equity from your house. It’s difficult to promise that your house will be protected for everybody.
– “Keep your car”. If your car is valued and considered to be worth too much (usually over £3,000) and it’s completely repaid (there is no hire purchase outstanding), then your trustee may ask you to sell your car for the benefit of your creditors.
There are a lot of other phrases used in debt TV adverts which can be misleading and confusing, but by speaking to a debt advice charity you can seek clarity and the help your require.
Contact Debt Support Trust today on 0800 085 0226 for honest and transparent debt advice.