The psychology of individuals seeking trust deed advice

27th April 2011

Comparison website moneysupermarket.com has produced an interesting set of survey results about the psychology of individuals seeking trust deed advice. They have found that the average UK adult owes around £8,500 in unsecured debts such as credit cards or bank loans.

This average level of debt seems to be one that we’ve become accustomed to and comfortable with. However, on average, unsecured debt becomes a worry when it reaches a figure just £1300 higher. Once unsecured debts reach a sum approaching £10,000 it seems that levels of concern increase drastically, prompting individuals to seek Scottish trust deed advice.

The point at which concern sets in varies between men and women. The average level for women is around £7,500 for women compared to over £12,000 for men. Some experts believe that this difference can be accounted for by a propensity for men to ignore the issue for longer and simply focus upon their work instead. Other experts conclude that women, often with primary responsibility for the care of children and the management of household finances, are better ‘connected’ to the potential risks of the situation, and as a result seek trust deed advice more promptly.

Nevertheless such concerns do not always appear to result in quick action being taken. Trust deed advice and other potential debt management solutions are not sought by many until the overall level of debt has spiralled to a figure closer to £20,000 (on average).

Trust deed advisers understand that there often needs to be a ‘tipping point’ at which people seek advice on an issue which has been a long-term concern to them. Such events often include aggressive debt collection letters or calls, the threat of legal action, or a recognition that no further credit can be obtained to keep the household finances afloat.

However, it is clear to all trust deed advisers that the sooner a debt concern is raised with a professional trust deed adviser, the sooner an effective solution can bring some relief. As taking advice sooner normally results in a lower overall debt total existing, the options to deal with the debts are typically more numerous and less ominous.

For example it can be possible for a debt arrangement scheme or debt management plan to be put in place which can clear the debts over a reasonable period of time. However, as the debt total grows the repayment term on such schemes can quickly become unrealistic. When this happens, more formal options, such as a protected trust deed or even bankruptcy, might become required.

If you’re concerned about your debts but have not yet taken advice we would encourage you to do so soon. Our trust deed forum may be a useful starting point to anonymously raise questions in connection to your circumstances, helping you to more thoroughly understand your position and the options available.

Our trust deed forum offers you the perfect opportunity to raise your concerns without having to speak to a debt adviser in person, which many individuals find daunting. Alternatively call our obligation-free trust deed advice line on 0800 043 7201.

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