A Scottish trust deed is a legal binding agreement that’s available to Scottish citizens which allows a trustee to deal with an individual’s financial affairs. This is often used as an attempt by Scottish citizens to help get them out of debt. It’s used by individuals that have been struggling with a lot of debt. Although many confuse a Scottish trust deed with a Debt Management Plan, they are quite different. A Scottish trust deed allows you to make a formal proposal of your debts to a creditor in an attempt to clear them up and is usually done through a trustee.
When a Scottish trust deed is set up, all of your debts are consolidated into one monthly payment that is spread out over 36 months. This is paid to the creditors on a pro-rata basis. The creditor is not the one that sets the payment amount. Several things are taken into consideration before the monthly amount is set. All of your assets and liabilities (what you own and what you owe others) is the first thing they look at when determining the terms of the Scottish trust deed.