Tackling your debts

What is a Trust Deed? Part 3

Posted 11 November 2015

Find out which debt solution is right for you

Get started

Answer a few simple questions

See if you are suitable

Understand your next steps

Do you have problem debt and live in Scotland? If so, a Trust Deed could help – read on to learn how they work.


Welcome to part three of this blog. This time we're going to look at some other things you might want to consider before entering into a Trust Deed.

Points to consider

While it’s wonderful that debt solutions exist and people are not left to struggle alone with unmanageable debt, they should not be entered into lightly, and there are always negative points to consider.

As we said, you may need to release equity from your house and pay it into the Trust Deed (although it would be unlikely that you would have to sell your house.) It’s possible that this will mean you have to pay more in interest on your mortgage.



While the Trust Deed is ongoing, you have to stick to certain conditions and show that you are putting as much money into the Trust Deed as possible. For instance, there are yearly reviews to see whether your income and expenditure had changed, and if you receive a PPI refund (or any other refund from a financial claim) then that money is due into the Trust Deed as well.

As mentioned above, Trust Deeds are not compatible with certain jobs. If you’re considering a Trust Deed then you need to look ahead at your own career path to make sure that it won’t stop you from progressing in the direction that you want to go.

The Trust Deed will show up on your credit file for six years from the date it starts and could mean that you have difficulty in getting credit once it’s over, as lenders will be able to see that you’ve been in financial difficulty in the past.

So there you have it. We hope we’ve given you a straight forward explanation of what a Trust Deed is and how it works. If you’re looking for the right debt solution for you, make sure that you do your research and speak to an expert who can advise you on the best course of action. Free advice is available from The Money Advice Service and our debt experts are always ready and waiting to answer your questions on Trust Deeds or any other debt solution.   If you’d like to chat things though get in touch using any of the contact details on the side of this page.



by Christine Walsh

Back to blog home

Did you find this useful? Share it with others!

To find other sources of free advice visit Money Helper. It’s here to listen and give free, impartial, trusted guidance. Based around you and backed by government.