Unlike the professionally qualified debt advisors at there are dishonest salespeople around who make money off people in vulnerable financial situations by signing them up for a trust deed that isn't appropriate to their needs. Here we talk you through the downsides so you have a realistic and balanced understanding.
Generally, a is seen as a decent, pragmatic way to handle your spiralling debts, but there is another, trickier side. Here we will discuss what can go wrong and why things could get tricky.
When discussing things that may go badly it's important to know exactly what it is. Please take no heed of all of the ads that present it as being an easy and readily available way to improve your finances; that sort of marketing is deliberately disingenuous.
Arranging a is an extremely major step and should never be taken lightly. It will not immediately solve all your debt concerns and it has a number of nasty results; you will find it difficult to get credit for some time afterwards and your finances will be closely watched. This doesn't mean that it isn't the right move for you, it will help clear your debt and hide you from interest but it is no silver bullet.
A falsely glowing view of getting by with a is cultivated by unscrupulous sorts who call themselves "trust deed advisors" but are truthfully nothing more than nasty salespeople. For lots of these degenerates there is a financial incentive for them to sign you up so, even if they do know the facts, they will be unlikely to tell you them all.
What will happen to your assets is a fact that lots of these unscrupulous salespeople gloss over, or intentionally do not tell you about. If you get a trust deed but also have significant assets such as a house or a car you will be forced to come up with funds which covers the worth of these assets or they might get sold, alongside your monthly debt repayments.
What happens when your financial position fluctuates is something that a number of, shady "advisors" do not properly talk about. It is a chance that numerous folk feel is worth it but, if your finances pick up your additional earnings will be taken straight away by your trust deed. Also, if your financial situation gets worse your trust deed may be cancelled or extended - this will be out of your hands.
So long as you make certain that you speak to professionally qualified debt advisors and get your advice from licensed insolvency practitioners you should develop a good and balanced view of what it will mean for you. As with any debt plan, having a trust deed has its fair share of unpleasantness but if you believe that it is the correct choice for you it can be practical and, in the end, beneficial.