Trust Deed

How could a Trust Deed help?

Writes off unaffordable unsecured debt
On successful completion of your Trust Deed, the unsecured debt you haven't yet repaid is written off.

One manageable monthly payment
You'll make one monthly payment to us, based on what you can afford alongside your other living costs. We'll then pass on your agreed payments to each of your lenders.

No risk of losing your home
Unlike bankruptcy, a Trust Deed doesn't carry the risk of repossession - so you don't have to worry about losing your home.

How a Trust Deed works

A Trust Deed is basically an agreement between you and your lenders in which you'll repay as much of your unsecured debt as you can for an agreed period - normally three years. In return, the rest of those debts will be written off on successful completion.

You can also protect yourself against demands from lenders if your Trust Deed becomes Protected (a Protected Trust Deed). This will happen unless more than 50% of your lenders, or lenders accounting for more than a third of your total debt, reject the proposed terms of your Trust Deed.

Once your Trust Deed has started, you'll make a payment to us every month. From this, we'll distribute the agreed payments to your lenders.

Is a Trust Deed right for me?

Trust Deeds are designed to help people who simply can't afford to repay all their unsecured debts within a reasonable time - and you will only qualify if this is the case. At the same time, you must still be able to commit to (smaller) regular monthly payments.

However, even if you do qualify, it might not be a viable option if enough of your lenders object to it. Alternatively, it may be the case that another debt solution is better suited to your circumstances - which is why it's important that you discuss all your options with an expert.

Our advisers can help you decide whether a Trust Deed is the right option for you. All you have to do is call us on 0800 195 2714.

Some things to consider

A Trust Deed could offer a lot of relief if your debts are unmanageable, but as with any debt solution there are some downsides to consider. In particular, records will remain on your credit history for six years, and obtaining further credit during that time could be very difficult. Also keep in mind that if you're a homeowner, you may be required to release the equity in your property as part of the agreement.

Just remember that if you're in the position where a Trust Deed is an option, not getting help could have even more serious consequences overall.