A Protected Trust Deeds, a solution to a debt problem for thousands of Scottish people, this is a very effective way to write off your debt and gain control over your finances.
Of all the people who do apply for a Protected Trust Deed many more will continue with the struggle of trying to pay for their debts, these people are either not aware off Scottish Trust Deeds or a scared to seek advice for what they believe can be an embarrassing situation.
There is no reason for anyone to be embarrassed or to feel like a failure as they are not alone in this situation. Another reason putting people off is they are worried about their credit rating and whither it will ever recover.
The truth is in a Protected Trust Deed your credit rating will be affected and this will continue for a further 3 years .The full impact is that your credit rating will be affected for 6 years if not longer.
Why Take A protected Trust Deed If my Credit Rating is affected?
When your creditors realize you are struggling with debt. They can assume you are looking at Debt management plans, or Consolidation loans. They are also aware that bankruptcy is the worst option for them.
If you miss a payment with your creditors they may serve you a default notice. This is a legal requirement of your credit agreement for a default notice to be served against you. This would stay on your file for 3-6 years and will only be marked on your credit file as ‘satisfied’ when paid.
If you went for a DMP or DAS your credit rating would still be affected as you are not sticking to the original agreement, and because both these solutions require you to repay until it is all paid back your credit rating will be affected for longer.
The best Way to Mend Your Credit Rating after a Trust Deed
After your Protected Trust Deed has ended, it is time to start re building your credit rating, this will require some hard work and a lot of determination.
To begin with always en sure that you are registered on the electoral roll. This is something lenders always check it’s their way of assessing you to be a trustworthy, creditworthy person.
When you’re Protected Trust Deed ends you will get a document called a 'Discharge Document'. This needs to be sent to the credit scoring agencies Equifax and Experian this will allow them to update your credit file and mark discharge next to your name.
Many people are able to successfully get loans and mortgages after they have been in a Protected Trust deed. This may mean taking out a credit card with a high APR but as long as you repay on time and do not miss payments this will all help your credit rating.
Taking these steps will help you get everything back on track and will restore your credit rating.
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