Debt arrangement scheme or a trust deed? Which to go forIf you have debts such as personal loans and overdraft among others, then there are a number of options that you can choose from. As a Scotland resident, you have two options to choose from in case you are not able to pay off your debts. These options are debt arrangement scheme and trust deed. Choosing the right one is normally a challenge to many people. Here are some guidelines to help you make a choice.
Interest and charges: Debt arrangement scheme and trust deed are similar in terms of interest and charges. Both of them will ensure that you do not pay any charge or interest on the loan. You will only be required to pay the remaining amount.
Payments: Trust deeds and debt arrangement scheme will require you to make payments on a monthly basis. You will only be required to pay depending on how much you can afford. This means that your budget will be looked at to ensure that you do not struggle in repaying the debt.
Duration: The trust deed goes for only 4 years and any remaining amount after this time is written off while a debt arrangement scheme will go for as long as you pay the amount that you owe. In DAS you have to pay the whole amount that you owe your creditor.
Credit rating: One of the downside to both options is regarding the credit rating. These two solutions will lead to your credit card being damaged for a period of six years.
These guidelines will be of help when you are making a decision. If you still have problems making a choice on the suitable option, then visit www.DebtArrangmentScotland.co.uk or DebtAdvisoryScotland (Trust Deeds). You will be able to get advice from experts on options that are suitable for you.