Both Trust Deeds and Debts Management are agreements with your unsecured creditors, where you agree to pay back a set amount each month. But there are a number of firm differences between the two which you need to be aware of:

* Amount of Debt Written Off
A Trust Deed can write off unaffordable debt. The amount of debt write off is dependant upon your personal circumstances, so please call our advisors now on 0800 0481 777 for further Trust Deed information.

A Debt Management Plan does not write off any part of your debt but reduces the amount that you need to pay on a monthly basis so your debts become affordable. However, this does mean that you will have to repay all of your debt over a longer period of time.

* Type of Agreement
A Trust Deed is a legally binding agreement between the debtor and the creditor. Once a Trust Deed has been approved the creditor cannot change their mind about the agreement.

Debts Management is an informal agreement between the debtor and their unsecured creditors. The creditors do not have to accept the offer and could, in theory, change their mind at any time.

* Amount of Debt Owed
A Trust Deed can only be arranged if you are a Scottish resident with over £10,000 worth of unsecured debt. If you have less than this amount it is likely that you will only get accepted for a debt management plan.

Remember that a Trust Deed is only available to those who live in Scotland. If you are a resident of England, Wales or Northern Ireland then an IVA is your Trust Deed alternative.

To discover more about the differences between a Trust Deed and Debts Management, call our debts advisors today on FREEPHONE 0800 0481 777 or fill out the Quick Enquiry form for a callback.

Terms & Conditions Apply. A Protected Trust Deed (PTD) is for unsecured debts and residents of Scotland only. It should only be considered in extreme circumstances as failure to adhere could result in Sequestration (The Scottish legal term for Bankruptcy). Debt write off applies only to where the PTD is agreed by your creditors and you have completed the, typically, 36 month term. Once your PTD commences, your monthly contribution is fixed and there are no additional fees on top. The fees, paid by your creditors, are taken out of your monthly contributions to your PTD and will be notified to you in advance. Some homeowners may be required to remortgage.