I usually review baby products and gadgets but sometimes it’s nice to take a bit of a break and look at some other stuff I could give you some information on, and that might be helpful. While I am no bunny when it comes to finances and money matters, banking, finance, investment and insurance products I usually leave to the experts. They work with these all day every day, so what would a mom with 3 kids know anyway?
I’m going to tell you about a little gem of a product called a trust deed. Even the name does it no justice although trust does form a significant part of how it operates. Why did I pick this? Well, I have a friend, Marge, who was in my ear the other day about her financial woes. And they were biggies too and that surprised me because I always though Marge and her husband were pretty well off. Looks can be deceiving, though. It’s a bit like that old fairy tale about the king who went out among his people in rags to find out what they thought of him. Well, in reverse anyway.
Marge and Peter always dressed well, they had a beautiful home and a good car and a daughter in college in another city. Not the sort of people you would think to have any financial problems. Let’s face it, we all have a few problems with money don’t we, at times? Marge didn’t think Peter was making enough money considering the hours he worked and Marge herself only worked part time as a receptionist at the local solicitor’s office. But they seemed well off enough to have what looked like a comfortable life.
Over a cuppa one afternoon, she said they were looking at getting some financial advice about their situation to see what could be done and the advisor suggested they look at a trust deed, Scotland. Did I know anything about them, she asked me? Not a darn thing actually. So here I am about to fill you all in on just what the trust deed is and what it can do. I obviously read up on them and also spoke to a friend of mine who is an accountant.
So, if you are in financial difficulties, more than £5000 it has to be, then you can come to an arrangement with your creditors to pay back some, not all of the money. The amount you decide on is agreed to by all parties. Let’s say you owe £11,000 but you only have the means to pay back £7000. You make the arrangement with a trust deed to pay back the £7000 and the remaining £4000 is written off. It sounds cool, and in a way it is. The alternative is bankruptcy which means your creditors get nothing. Not a really good choice for them and a disastrous one for you as well. Simple, neat and an excellent solution. That was worth knowing, wasn’t it?