The Pros or Advantages of a Protected Trust Deed

A Protected Trust Deed provides a substantial amount of pros, or advantages.

Like all debt solutions, the Protected Trust Deed will be evaluated on its ability to provide the most effective solution and most people judge that effectiveness by comparing the pros, or advantages, against the cons or disadvantages.

Comparing the pros and cons of one debt solution against another will help you determine which debt solution is best for you.

The Pros or Advantages of the Protected Trust Deed:

  • Free Application Service. My Trust Deed Adviser does not charge any upfront fees for any of the services we provide. By asking for our help we will assist you prepare your Protected Trust Deed application and, unlike most of our competitors, it will be completely free of any upfront charges.
  • Affordable Repayments. A Protected Trust Deed will only require you to pay what you can afford, once your essential living costs have been accounted for, removing the financial burden of having to pay more.
  • Your Creditors Pay the Trustee’s Fees. The fees that are incurred in setting up and administering a Protected Trust Deed are borne by the creditors. The Trustee’s fees are included in the contributions you pay into your Trust Deed fund each month, therefore ensuring your Trust Deed payments remain affordable.
  • A Fixed Repayment Term. The Protected Trust Deed has a fixed repayment term, which is normally only 3 years. After the final payment, the arrangement is considered successfully completed, which is a major advantage in comparison to potentially a much longer debt management plan.
  • Offers Possible Debt Write-Off. A Protected Trust Deed will legally write-off any money that has not been repaid at the end of the arrangement. Creditors are legally bound to accept that all the outstanding balances are considered full and finally settled once the Protected Trust Deed has been completed successfully.
  • Stops Interest Charges. A Protected Trust Deed places a legal requirement on each creditor to stop adding interest charges to the outstanding balance whilst the agreement is active.
  • Stops Late Payment Charges. Creditors lose the ability to inflate the outstanding balances once the Trust Deed has reached a ‘Protected’ status.
  • Stops Legal Action. Once the Trust Deed has achieved ‘Protected’ status, the creditors are no longer able to take legal action, or diligence, against the applicant. They must accept the Trust Deed’s dividend as full settlement for any outstanding balance.
  • Legally Binding Agreement. By allowing a Trust Deed to achieve a ‘Protected’ status, the creditors become legally bound by it and, as such, they must comply with the demands of the Trustee and all his decisions. This is one of the major pros, or advantages, because you are no longer having to deal with the situation on your own.
  • An Alternative to Bankruptcy. A Protected Trust Deed acts as an alternative to bankruptcy and, as such, offers people whose incomes and livelihood would be threatened by a bankruptcy, the opportunity to become debt free through a formal and legally binding debt solution.

These are the main pros, or advantages, of a Protected Trust Deed.

However there are two further, often overlooked, significant upsides yet to be mentioned.

  • Complete Debt Solution. A Protected Trust Deed is a complete solution. When a Protected Trust Deed comes to a successful conclusion, the applicant will be totally free of any unsecured debt.
  • Peace of Mind. A Protected Trust Deed provides peace of mind. It stops creditors from making direct contact with the applicant, as any correspondence must be done through the Trustee.

The upsides of a Protected Trust Deed are numerous and above we have only laid out the more obvious ones for you to consider.

Now that you are more familiar with the benefits of a Protected Trust Deed you should take a look at the other side of the coin.

As with all debt solutions there are also some cons, or disadvantages which are equally important to the decision making process.

Take this link to read about the Cons or Disadvantages of a Protected Trust Deed.

If you would like to discuss your circumstances with one of our specialist Protected Trust Deed advisers, why not call our FREE helpline on 0800 088 7503 where an adviser will be able to give you a detailed breakdown of the Pros and Cons of a Protected Trust Deed.