Loan to pay off tru...
 
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Loan to pay off trust deed

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(@youjoe)
Active Member
Joined: 4 years ago
Posts: 8
Topic starter  

Hi I am on my fifth year si I have got just over one year left on my trust deed the question is can I take a high interest loan since my credit scoring is still poor to pay off the remaining balance of 3k so I could get discharged than move the loan to a better rate once my credit score improve or is that going to get me into trouble with my trustee thanks for any help.

Mery


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 16 years ago
Posts: 4253
 

Hi Youjoe. I don't see any reason why you couldn't do this if you want to - though I would recommend you only consider it if the loan is definitely affordable for you.

The regulations say a trust deed must run for a minimum of 4 years and there isn't anything that says you are not allowed to take new credit while in a Trust Deed. I would still recommend you run your plan past your trustee first though, just to be on the safe side.

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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(@youjoe)
Active Member
Joined: 4 years ago
Posts: 8
Topic starter  

Thanks Kevin much appreciated

Mery


   
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(@youjoe)
Active Member
Joined: 4 years ago
Posts: 8
Topic starter  

Hi Kevin any hidden costs I should be aware of or just the remaining balance thanks

Mery


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 16 years ago
Posts: 4253
 

Shouldn't be any hidden costs. Your trustee will be able to confirm the remaining balance due.

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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