A protected trust deed can be a great debt solution when it’s entered by people who it was designed to help the most. It can help people avoid bankruptcy, repay only a percentage of their debt and be debt free in 3 years.
It’s important before anyone enters a trust deed they understand exactly what the consequences could be and how it will impact them in the future.
Getting good trust deed advice is essential before anyone considers entering a protected trust deed, but where should people get good debt advice?
Good Trust Deed Advice
The advice should be free and given by an organisation which has a FCA licence which authorises them to give debt advice. Ideally the advice should be from an adviser who isn’t partial to which debt solution someone enters. Specialised trust deed companies can give perfectly good advice, however it’s often best to speak with an organisation who specialise in all debt solutions.
Before signing the trust deed people should have had the entire process explained to them so they understand exactly what will happen at each stage. If someone is left unsure about the process and can’t get answers to important questions this is bad trust deed advice.
Bad Trust Deed Advice
All debt advice should be given by a person or organisation which has an FCA licence which specifically authorises them to give debt advice. Anyone who doesn’t have an FCA licence shouldn’t be avoided when seeking trust deed advice.
Any person or organisation who take fees or payments just for giving the trust deed advice should be avoided because while it’s not illegal, it is unnecessary. Even the majority of for profit debt advice companies will not charge for just giving advice.
When someone enters a trust deed they risk losing any inheritance they receive or additional money such as PPI, this should be explained from the start. In some instances people haven’t been told they would risk losing any additional money until they had entered the debt solution. This is extremely bad trust deed advice because a person could be forced into paying the full debt, plus any fees and charges for managing the solution.
Steps To Get Good Trust Deed Advice
- Reputation: Get advice from a reputable organisation who have all the appropriate licences and experience
- Second Opinion: Never just accept one debt advisers opinion, even with the best intentions a debt adviser is human and could make an error
- Knowledge: The internet is full of excellent websites which have all the information needed to learn about entering a protected trust deed
If you have a question about entering a trust deed you can comment below or ask us in the debt advice forum.