The Benefits of Debt Settlement

Debt settlement is a lesser-known option, partly because many other providers wrongly educate their clients and lead them away from this option. However, at Debt Advisory Scotland, this is our forte, especially through Scottish Trust Deeds. There are, of course, other objective and tangible benefits to debt settlement.

Avoid bankruptcy (also known as sequestration). In theory, bankruptcy is a status that lasts for six years (or more if it is renewed). In practice, though, it often follows you for the rest of your life. Many times, applications for not only loans and credit cards, but also jobs will ask if you have ever declared bankruptcy. If you answer incorrectly and the truth is discovered, then there can be repercussions, including the loss of your job.

Debt settlement can also have an impact on your credit report, but it is considered to be less significant, and the duration is shorter.

Relief from uncontrollable debts– Not all creditors will agree to slash the amount of the stated debt. However, it is in their best interest to do so. After all, if they know that they can collect £15,000 from you rather than merely hope to collect £25,000 from you then they will more likely choose the former. Moreover, the amount of interest that you have already paid may be sufficient to make up for any nominal loss on their parts.

It certainly is in your best interest to pay £15,000 rather than £25,000

Faster relief– It all depends upon the contract, but you can usually discharge all of your debts within four years. This is better and sooner than declaring bankruptcy, and it is usually faster-and almost always less expensive than debt consolidation schemes. Moreover, it is faster and cheaper than doing nothing and attempting to continue paying back the obligations. It is somewhat well known that if you make the minimum payments on a credit card (and do not make additional charges to the card) then you will pay at least 10 times the amount and it can take 18 years to do so. This is a significant portion of your adulthood.

A M Mediators, It is rarely easy to pay back debt using traditional methods; and may create more problems, conflict, expenses, and stress. Debt problems frequently bring couples to the brink of divorce because each party insists that the other owes them money.

A 'Letter Before Action' is often issued when one of the parties insists on mediation even though both parties agree. This is a formal; and legal document which must meet the specifications set forth in the Legal Compliance Directives. action before, during, and after an event.

debt calculatorUse this trust deed calculator to determine if you qualify for a trust deed.