Employment And Credit Ratings Information

With a Scottish Trust Deed, many people can manage their debt issues. However, at the same time, there are also issues of how this effects employment.

Scottish Trust Deeds - Employment And Credit Ratings Information

With a Scottish Trust Deed, many people can manage their debt issues. However, at the same time, there are also issues of how this effects employment. In other words, people worry that they could hinder their career growth or put themselves in a position from where finding a job would become difficult. There are some people who are also scared of their current employers finding about their Trust Deed arrangements as that could be pretty embarrassing. It is embarrassing mainly because a Trust Deed clearly indicates that the individual was not able to take care of his finances on his own.

Employees Arrangements

The good news is that the employer need not know about an employee’s Trust Deed arrangements, unless and until the employers is one of the creditors. Though a Trust Deed is advertised in the Edinburgh Gazette , it is very unlikely that the employer would find about the employee’s , as there are too many names advertised on the Gazette. And to be on the safer side, it is recommended that one does not discuss things relating to the Trust Deed with his co-worker, as there are chances of the colleague accidentally or intentionally discussing the issue with the employer.

There are some jobs that expect their potential employees to not be involved in any form or type of insolvency arrangement. Hiding Trust Deed arrangements would not be advisable and it could also be termed as a serious offence. Most of the jobs that are not in favor of such an arrangement are the ones where the individual is given over the responsibility of handling and managing the money of other people. Investment banking, accounting, etc. are some of these jobs. This laso applies if you are considering entering an IVA (Individual Voluntary Arrangement), which is the english version of a Trust Deed as an IVA is based on the same principles but the criteria varies slightly.

Will I Get Fired?

It is highly unlikely that an employee would be fired if his current employer finds out about his Trust Deed arrangements. It is because the employee being in a Trust Deed arrangement or a solvency settlement does not in any way reflect the professional skills and potential of the person at the workplace. However, if a person has the responsibility of handling money, then it is advisable that he discusses his options before getting exposed.

Trust Deeds and their Impact of Credit Rating

If an individual has a debt burden haunting him continuously for some time, then Trust Deeds are probably the most important and useful financial tool that they can make use of to get out of the situation. However, many people are still very sceptical about Trust Deeds fearing the impact it would have on their credit ratings. Visit Trustdeeds.net for more information.

For starters, credit rating is a score or a yardstick that lenders make use of to measure the credit worthiness of the borrower. In other words, through credit ratings the lenders can find out to some extent who they are lending their money to. When an individual’s credit rating is arrived upon, there are certain factors that are taken into consideration. Some of the major factors are the credit amount, the spending pattern of the borrower, the borrower’s present debt levels, credit payments default made by the borrower, the rates of interest being charged, etc.

The lenders do not have the credit information of all the borrowers in town. In fact, they do not have the data about any individual borrower. The lenders would look up to the data stored by credit rating agencies only when the individual comes to the lender for a loan arrangement.

Determining Credit Worthiness

When lenders determine the credit worthiness of a borrower, they are not looking for individuals who borrow money in small amounts and pay it back on time without arrears. Instead, they are looking for individuals who have borrowed huge sums and have not defaulted with the payment on such sums. In other words, when a lender looks into the credit-worthiness of a borrower, they are looking for someone with whom they can make some good chunk of money.

The Impacts

As far as the impact Trust Deeds have on credit ratings, it is no doubt that Trust Deeds have a negative impact on one’s credit rating, as the borrower through a Trust Deed hands over the management of his creditors to a third party. This gives the lender an impression that the borrower had previously got into trouble with his finances and has therefore brought on-board a professional to take care of the same.