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Scottish Trust Deed Forum
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Topic starter
20/09/2012 6:05 pm
Hi,
as it stands at the moment i have around 19k of debt and looking at the possibility of going down the trust deed route.
can someone tell me once ive completed the trust deed 3 or 4 years whatever the time scale, will i be able to get credit again in the future for example mortgage, car finance etc and how does it effect your credit rating or listing once trust deed has been completed.
any help much appreciated.
20/09/2012 6:14 pm
Hi james83 and welcome.
It's clear that starting a trust deed (or any other debt solution) will have a serious effect on your credit rating.
We do have members that have written that they have been able to obtain the types of credit that you mention in the years after they have been discharged.
There are a number of things you can do to rehabilitate your credit rating once a trust deed has finished.
Can I ask, will you be able to manage and repay the debts that you have (without taking on further credit) if you choose not to go ahead with a trust deed or the other options?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
20/09/2012 7:11 pm
hi,
no i wouldnt manage to repay debts without taking out more credit, as it stands the now some of my debts are building up more intrest weekly.
20/09/2012 8:35 pm
Hi James
I think credit will be an issue as TDA mentions above.
In theory it should come off your credit file after 6 years, however I think it may be a problem before then. For a mortgage, the size of the deposit will be a major factor, although there are some companies who will finance cars, although the interest rates may be higher.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
20/09/2012 9:21 pm
Hi james83.
If your repayments are unaffordable without borrowing more your credit rating is a secondary consideration. The reality is that it will deteriorate in time as the debt grows and eventually cannot be sustained any longer.
The primary consideration is finding the best solution to deal with the underlying financial problem. Once you do that, and complete the process, you will gain the opportunity to rebuild your credit status again.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
21/09/2012 1:17 pm
Although signing a trust deed is inevitably going to damage your credit rating in the short term, in a way it can mean that in the medium/long term your rating may actually be better. If the alternative is paying off your debts over several years then you are going to struggle to repair your credit rating any time soon.
As Mark says, the main factor for getting a mortgage these days, whatever your credit rating, is having a decent deposit to put down. By getting the debts cleared as quickly as possible then you should be able to start saving for a deposit a lot sooner and a mortgage will then become a possibility sooner too.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
