Being in Debt; Understanding Your Situation

Taking loans is perfectly normal and is done by people all around the world since it provide people with extra financials that are needed to move ahead in life, the downside to taking loans is that you have to pay them back after a certain period of time with an added interest. There are two basic kinds of debt; healthy debt which can be paid off without trouble and which is often taken to pay for a new car or mortgages. The second is an unhealthy debt, this kind of debt is harder to pay off and can cause a lot of trouble, it often happens that people start out with having healthy debts which slowly build up as they take more and more loans until the situation spirals out of hand.

When a person fails to pay their debts they can run into serious legal trouble which can threaten their personal assets and further ruin their financial position even further, being tangled in debt can be a very stressful experience, especially if the party that you owe to is impatient and pressurises you to pay your dues. The thought of going to court for not paying your debts can be pretty stress inducing as the penalties can be pretty severe, in extreme cases a person’s personal assets can be seized in order to cover the amount that wasn’t paid. A lot of people have to face problems with returning debts, but a large majority of them often don’t know all of their options.

When a creditor takes debt collection to court, they often hire a bailiff- someone who collects debt on their behalf- to take care of situations, bailiffs can be pretty pushy and demanding and hard to deal with, however they have their limitations which if they cross, you can sue them for debt collection harassment. The best case scenario for paying off debts is that the matter never gets taken to court, the best way to ensure this is to form a trust deed with the person whom you owe. A trust deed is a mutual agreement between the party that is in debt and the party that wishes to collect its debt that is overseen by a trustee, a third party insolvency practitioner that helps set guidelines which make the entire process better and easier for both sides.

A trust deed prevents the creditor from taking legal action in order to collect debt, ensuring that the person in debt’s assets are safe from being seized, it sets a time period, usually of up to four years in which the debt has to be paid off. A trust deed is perhaps the best option for anyone who is in debt and who is legible for forming one, if you’re looking for the best advice and guidance on a trust deed Scotland has to offer then get in touch with CreditFix, an experienced insolvency practitioner who can help you pay off your debts in a stress free and reliable manner.