Holidays sacrificed in an effort to avoid trust deeds
6th July 2011
The traditional annual holiday is being sacrificed by an increasing number of people throughout Scotland. This fits the pattern of general expenditure cutbacks being made by many households throughout the UK. According to an ING Direct survey, four in ten households say they simply cannot afford a summer holiday.
Whilst a substantial amount of money can be saved by not going on holiday, the cost in terms of family relationships is not so easy to measure. As people lead increasingly busy lives the opportunity for families to spend time together are dwindling and less than has been experienced by previous generations. The annual family holiday has become a rare opportunity to enjoy time together free from the stresses and strains of work and education. However, with the threat of trust deeds looming, holidays have been a necessary sacrifice.
In previous years people would have simply paid for their holiday on a credit card. However, with the threat of debt repayments comes a fear of an individual’s ability to pay back the debt, especially with credit card interest rates on the up. The public may have also become increasingly aware of the risks of spending in this way, perhaps through having friends or colleagues that have entered trust deeds. Holiday spending can often be a factor in the situation. Many who have not been affected personally will know of individuals who have undergone trust deeds due to unmanageable personal debt.
What if you do use credit to pay for your holiday? Plan ahead to work out how long it will take to repay the new debt and also how much the overall cost will be. If you have other debts make then sure all of your repayments will be affordable. Not doing so could later leave you vulnerable to the need for Scottish trust deeds later on.
If holiday debt is already weighing you down financially then advice on your debts should be taken promptly. Failing to act quickly can result in a more serious situation developing. Scottish trust deeds are a serious step to take and should be viewed as a last resort. Taking advice soon may make less formal and rigid debt solutions available.
So with that in mind, is it possible to have a holiday whilst under the terms of Scottish trust deeds? There is no restriction placed on how you spend your allotted budget, so although not necessarily easy, it may be possible to save the required amount.
Many people undergoing trust deeds have also agreed with their Trustee that they can keep a proportion of any overtime or bonus payments. Where such payments are received then a family holiday can become a reality. If you’re considering a Scottish trust deed then it is important to ensure the proportion of bonus payments of overtime you can keep is set out in writing before trust deeds are signed.
For further protected trust deed advice and support call our advice line on 0800 043 7201 or contribute to our trust deeds forum.
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