What Debts Are Covered by a Trust Deed

What Debts Are Covered By A Trust Deed?

The question of which debts are covered by a trust deed is a common one from many of our customers. All unsecured debts are covered by a trust deed, and full compliance on this matter is a legal obligation for the debtor. To meet the full requirements for qualification for a Protected Trust Deed, all details of unsecured debts must be disclosed.

In general most creditors consider a Trust Deed Scotland to be a fair and proper way to repay the money that is owed. A favourable attitude towards certain creditors is not an option, and honesty concerning all debts is required. The single exception to this is money owed to, or debts with personal family members. Without the necessary legal documentation it is impossible to include family members in a Protected Trust Deed.

The term ‘unsecured debts’, has many relevant classifications, all of which must be divulged, examples or these are:

• Credit Cards
• Store Cards
• Payday Loans
• Overpaid Tax Credits
• Bank Loans
• Unpaid Tax Bills
• Bank Overdrafts
• Building Society Loans
• Door Step Loans
• Utility Company Loans
• Mortgage Company Shortfalls
• Finance Company Shortfalls

The final two entries on this list are not as familiar as the rest, and may require clarification. The term for a debt created by the sale of an asset, such as a house or car, where the money secured against it is more than the amount received in the sale is a ‘shortfall’.

A shortfall is only relevant if the asset that is to be sold is used as security against repayments. This could also include HP agreements or mortgages. All funds generated by the sale will claimed by the relevant creditor.

 

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The Best Debt Option
Many people are struggling with the burden of several unsecured debts, and the best option for many of these people is a Protected Trust Deed. It is common to experience debt problems, but the biggest step is facing up to the problem and dealing with it. It is surprisingly common for people to bury their heads in the sand when they are faced with increasing debt worries, hoping that the problem will disappear, or resolve itself. When they finally face the music, the scale of their debt problem is often an unpleasant surprise to them.

 

The Positive Side
On the positive side this can change people’s lives for the better. Many people have found the experience empowering and life changing as they regain control of their finances. The debt may seem like a mountain to climb at first, but the professional company dealing with the fine details will bring the debtor back to being financially stable.

 

Take The Steps…
The steps that will be taken will help the debtor to resist taking out any future unsecured debts (if they are able), and concentrate solely on clearing all current debts with the Protected Trust Deed. Relief from incessant phone calls and ‘red’ letters is a breath of fresh air, and positive financial direction is attained.

Make the first steps towards financial freedom. Deal with debts by enquiring how a Protected Trust Deed will help towards a better life.

The Preferred Types Of Life Insurance Policies Today

There are various types of life insurance but generally, people look to buy term life or a universal whole life policy. Universal or whole life policies have become a great investment vehicle, and while they are not cheap life insurance policies, companies are offering competitive life insurance cheap quotes instantly but which policy serves you best?

 

The Difference among Policies

Term life policies are a temporary assurance of a lump sum payment. It’s there to protect your family from any financial burdens like funeral arrangements, and critical on-going family needs. The policy is explicitly for life coverage only. It pays the face amount to the beneficiary on the death of the insured, and you can purchase term life policies for periods of one year up to 30 years.

Furthermore, term life policies have changed quite a bit. Years ago, term policies had an annually renewable term, which meant insurers could raise premiums more often. Today, consumers can lock in term rates for up to 30 years, so you’ll know exactly how much you’ll pay for the life of the policy.

On the other hand, there’s an insurance policy that combines the benefits of a term life policy with an investment component — whole life insurance. Generally, the investment is in stocks and bonds and money-market instruments. The policy increases in cash value that you can borrow against, but it takes years to accumulate the cash.

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So why does anyone purchase whole life policies?

1. This policy lasts for the period of your lifetime

2. You can use a whole life policy as an investment for retirement and the kid’s college fund

3. Provides additional monetary cushion for your surviving family members

4. The cash value grows tax-free. Under the current law, all earnings from a life insurance policy are non taxable.

Those reasons alone often place whole life policies in the spotlight, but this is not a cheap life insurance policy — it’s pricey.

The bottom line is term life insurance is more affordable and still relatively flexible, and when properly set up term life insurance can provide great coverage without unnecessary risk.