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Beware Of Trust Deed Calculators

Updated: 10th October 2016

What Are Trust Deed Calculators?

Many Scottish debt advisory websites provide “trust deed calculators” or other types of “wizards”.

A visitor enters some of their financial details into the online calculator. This is completed in the expectation that the visitor will find out whether they qualify for a trust deed in Scotland, how much they’d have to pay, and how long they’d have to make that payment for. Some of these calculators even estimate how much of the visitor’s debts will be written off.

Using a calculator of this type might sound appealing to you? They’re presented as being a really quick and convenient way to find out how to tackle your debts.

The Problem

The results you receive from trust deed calculators are virtually useless!

  • Online tools don’t factor in the restrictive expenditure guidelines that creditors impose. This will greatly influence how much you’d need to pay each month to make a protected trust deed work.

  • No attention is paid to the varying acceptance criteria employed by different creditors. What one bank will accept from you, another lender may not accept.

  • Trust deed calculators cannot value your assets. If you own a home or car, you need to know whether they’ll be put at risk by signing a trust deed.

  • The tool has no idea whether your employment or professional status might be affected by entering into a formal personal insolvency.

Some websites subtly acknowledge these fundamental flaws. They place warnings near the calculators which inform users about the very serious limitations associated with them.

Less reputable firms don’t bother. They’re notorious for using online tools which almost always tell you that a protected trust deed will be perfect!

So What Purpose Do The Calculators Have?

Firstly, the website is trying to capture your contact details. They want to speak with you. They’re hoping to sell you something.

Secondly, the less reputable firms desperately want you to believe that you qualify for a trust deed. They want you to think you won’t be paying very much, and that most of your debts are going to get written-off. They’re motivating you to speak with them (probably on a false premise).

To be charitable, some of these trust deeds calculators can at least give you an unreliable indication that you might qualify for a Scottish trust deed. But there again, you knew that you might qualify for a trust deed or you wouldn’t have bothered to use the calculator in the first place!

What’s The Alternative?

Speak to a human!

In a short telephone conversation most skilled debt advisers could give you a much more reliable indication about whether a protected trust deed could work for you.

After a slightly longer telephone conversation, they’ll be able to tell you whether you’re likely to be accepted for a trust deed, how much you might need to pay, and whether your assets will be safe. They’ll also be able to suggest some alternative options – trust deeds in Scotland simply aren’t the best option for everyone. 

We understand that obtaining debt advice for the first time can feel intimidating. Many people suffer for months until they’re ready to reach out for help. There’s no need to suffer, contacting a debt adviser is the first step towards making things much better in the future.

You can find human debt advisers (!) via Citizens Advice or the Money Advice Service. We also employ three professionally qualified humans at Trust-Deed.co.uk – please feel free to get in touch with us!  

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Wylie & Bisset Grant Thornton

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Trust-Deed.co.uk, Clyde Offices, 2nd Floor, 48 West George Street, Glasgow, G2 1BP. Tel: 0141 2490416.